The Upward Trend in Petrol Prices Continues: Here are the Latest Developments

Petrol Prices on the Rise

The price of Brent crude oil rose to 63.65 dollars with a %0.2 increase as of 09:36 today compared to the previous close. At the same time, the price of West Texas Intermediate (WTI) crude oil was trading at 59.69 dollars. The day before, Brent crude hit a high of 64.51 dollars before closing at 63.50 dollars.

Impact of Geopolitical Developments

Heightened geopolitical tensions in global markets and U.S. President Donald Trump's stern messages regarding trade policies negatively affected investor risk perceptions and pushed oil prices upward. Ongoing geopolitical risks worldwide, along with new tariff threats from the U.S., continue to play a significant role in determining market direction.

Trump's Statements and Market Reaction

Trump increased uncertainty with his stance on Greenland and hints of retaliation against European countries. The U.S. decision to implement a %10 tariff from February 1 on the eight European countries that do not provide support, followed by a %25 tariff from June 1, has heightened concerns that trade wars may reignite. The announcement that these tariffs would remain in effect until an agreement to acquire Greenland is reached has increased pressure on the markets.

Developments in Davos Being Monitored

With growing concerns about supply security due to geopolitical and trade tensions, attention has turned to the World Economic Forum (WEF) being held in Davos, Switzerland. It is expected that Trump's upcoming speech will significantly impact the markets, particularly with messages relating to Greenland and trade policies. It has also been noted that Trump previously mentioned the possibility of finding 'an exit strategy' with Europe in an interview.

Safe Haven Demands and the State of the Dollar

The decline in risk appetite brings with it a demand for safe havens. As the price of gold per ounce reaches record levels, U.S. Treasury bonds are under significant selling pressure. The dollar index continues its downward trend, making oil priced in dollars more attractive in other currencies and triggering price increases.

Possible Changes at the Fed and Expectations

Additionally, who will take over at the U.S. Federal Reserve (Fed) is being closely watched. According to statements from the U.S. Treasury Secretary, the new Fed chairman candidate is expected to be announced by Trump next week. Expectations that the Fed will continue its low-interest-rate policy are forecasted to provide upward support for economic growth and oil demand. Analysts emphasize that while the new Fed chairman's continuation of the low-interest-rate policy may initially be viewed positively by the markets, it could raise concerns about the independence of the Fed in the longer term. Technically, a resistance level of 65.17 dollars and a support level of 59.43 dollars for Brent oil prices are being monitored.