Brent bounces back as Iran rejects ceasefire claims
The front-month ICE Brent contract has gained by $7.09/bbl on the day, to trade at $105.89/bbl at 09.00 GMT.
IMAGE: Getty Images
Upward pressure:
Brent’s price has bounced back above $100/bbl mark as Iran rejected Washington’s claims of negotiating with Tehran.
The US has put forward a 15-point ceasefire plan to Iran that could open the door to a month-long truce. Tehran, however, has dismissed claims that any direct negotiations with the US are underway.
“Has the level of your inner struggle reached the stage of you negotiating with yourself?” Reuters reported, quoting Iranian military spokesperson Ebrahim Zolfaqari as saying.
The Strait of Hormuz – which is highly critical for crude oil flows – continues to remain closed to commercial vessel movement, adding upward pressure on Brent’s price, according to analysts.
“For oil, the crucial element is the guarantee of safe and unrestricted passage for international shipping through the Strait of Hormuz, effectively reopening it to all vessels,” Price Futures Group’s senior market analyst Phil Flynn wrote.
Downward pressure:
Brent crude’s price has felt some downward pressure after the US Energy Information Administration (EIA), reported a sizeable increase in US crude stocks.
Commercial US crude oil inventories increased by 6.9 million bbls to 456 million bbls in the week ending 20 March, according to data from the EIA.
Yesterday, the American Petroleum Institute (API) reported a rise of 2.3 bbls in the week.
A build in US crude stocks typically indicates lower demand for oil and can put some downward pressure on Brent's price.
By Aparupa Mazumder
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