Oil prices have fallen

A barrel of Brent crude oil is traded at $68.24 in international markets.

The barrel price of Brent oil, which rose to $68.83 yesterday (July 15), closed the day at $68.29.

The price of a barrel of Brent crude oil fell 0.07 percent to $68.24 as of 9:17 a.m. At the same time, a barrel of West Texas Intermediate (WTI) crude oil was trading at $65.63.

Inflation has risen in the US

Oil prices declined as inflation data released in the US increased uncertainty about the US Federal Reserve's (Fed) interest rate policy and expectations that there would be no disruption to global supply.

The US Consumer Price Index (CPI) rose in June, in line with expectations at 0.3 percent month-over-month and exceeding expectations at 2.7 percent year-over-year. Monthly inflation reached its highest level since January, and annual inflation its highest level since February.

The core CPI, which excludes volatile energy and food prices, rose 0.2 percent monthly and 2.9 percent annually in June. Market expectations were for core inflation to be 0.3 percent monthly and 3 percent annually.

Following the upward movement in inflation, expectations in money markets that the Fed would cut interest rates in September weakened, while predictions that the Bank would cut interest rates a total of two times during the year remained intact.

High interest rates are expected to cause the US dollar to appreciate against other currencies, reducing oil demand and affecting prices downward.

In addition, data indicating that crude oil production from the Organization of the Petroleum Exporting Countries (OPEC) has increased also eased market players' supply concerns and supported the downward movement of prices.

According to OPEC's monthly oil market report, the group's production increased by 220,000 barrels per day in June compared to the previous month, reaching 27.023,000 barrels per day. During the same period, total crude oil production by the OPEC+ group, comprised of OPEC and some non-OPEC producing countries, increased by 349,000 barrels per day to 41.560,000 barrels per day.

"DEMAND WILL REMAIN CONSTANT"

In addition, the group did not change its global oil demand growth forecast for this year, noting that global demand is expected to increase by approximately 1.3 million barrels per day compared to last year, reaching 105.1 million barrels per day.

The expectation that demand would remain stable in the face of increasing supply strengthened the perception of excess supply in the market, putting pressure on prices.

Meanwhile, the American Petroleum Institute reported that US crude oil inventories rose by 19.1 million barrels last week compared to the previous week. Expectations had been for inventories to fall by 2 million barrels. The larger-than-expected increase fueled demand concerns in the world's largest oil-consuming nation, pushing prices down.

The US Energy Information Administration is expected to release official stockpile data later today.

It is stated that technically, $74.72 can be watched as resistance and $63.23 as support for Brent oil.