The forward barrel price of Brent oil, which rose to $109.45 yesterday, completed the day at $108.75. The November term barrel price of Brent oil decreased by 0.6 percent compared to the closing as of 09.27 today, reaching 108.06 dollars.
At the same time, the October delivery barrel price of West Texas Intermediate (WTI) crude oil was determined as 104.71 dollars.
The decline in oil prices is due to the US House of Representatives' adoption of the bill requiring American forces to withdraw from conflicts with Iran and the expectations that the US Federal Reserve (Fed) will increase interest rates by 25 basis points today.
The US House of Representatives yesterday passed a war powers bill directing President Donald Trump to withdraw American forces from conflicts with Iran.
Gregory Meeks, Democrat Member of the Foreign Affairs Committee of the US House of Representatives, stated that the USA has been in the conflict for approximately 200 days and argued that the Trump administration has not achieved its declared goals.
Meeks cited rising gasoline prices and mortgage interest rates, inflation, billions of dollars in public spending and losses suffered by the U.S. military as the costs of the conflict.
Thus, the House of Representatives passed a similar war powers bill for the third time.
This development supports expectations that the tension between Washington and Tehran may decrease, putting downward pressure on oil prices.
Fed expectations pressure prices
Additionally, expectations that the Fed will tighten monetary policy also pressure prices.
The expectation that the Fed, which kept the policy rate constant at 3.50-3.75 percent in the July meeting, will increase the interest rate by 25 basis points in the decision to be announced on September 16, is gaining weight in the markets.
Although the Fed's possible interest rate increase does not directly eliminate the supply shortage, it puts pressure on prices with the expectation that it may limit economic activity and oil demand in the United States, the world's largest oil consumer.
"Energy ceasefire" initiatives between Russia and Ukraine put pressure on prices
In addition, US President Donald Trump's initiatives to stop mutual attacks on energy infrastructure between Russia and Ukraine also contribute to alleviating concerns about global energy supply.
Trump announced on Monday that Ukraine and Russia agreed not to strike each other's energy facilities.
Trump said, "Ukraine agreed not to hit Russian energy targets. Russia agreed to do the same. The real reason for the worldwide diesel price increase is largely the Russia-Ukraine War, not Iran." he said.
On the other hand, Zelenskiy stated that they carried out attacks on oil refineries and UAV production facilities in Russia yesterday, and that Russia continues to target Ukraine's energy system and critical infrastructure.
Russian Foreign Ministry Spokesperson Mariya Zaharova stated that Trump's "energy ceasefire" proposal should be supported with concrete steps.
Attempts between Russia and Ukraine to stop attacks on energy infrastructure support the downward movement of oil prices by strengthening expectations that the risk of interruption in energy supply may decrease.
Pipeline outage in Saudi Arabia keeps supply concerns alive
On the other hand, the news flow that supply disruptions were reflected in shipments after the closure of Saudi Arabia's East-West Oil Pipeline, which bypasses the Strait of Hormuz, following the attacks on September 10, limited the decline in prices.
According to market sources, some oil shipments to Europe planned for September were canceled on September 15.
It is stated that if the interruption in the line is prolonged, up to 4 percent of the global oil supply may be at risk.
It is stated that technically $ 114.79 can be watched as resistance and $ 101.74 as support zone for Brent oil.
