Brent continues to move higher on supply fears

The front-month ICE Brent contract has added $0.64/bbl on the day, to trade at $67.15/bbl at 09.00 GMT.

IMAGE: Oil barrels and an upward arrow depicting Brent's price gains. Getty Images

Upward pressure:

Brent’s price moved higher as market participants continue to focus on supply concerns in the global oil market.  

Over the weekend, several US airstrikes on Ras Isa fuel port – a key oil terminal along Yemen’s Red Sea coast – caused a major fire and killed at least 74 people, the BBC reported citing the country’s Houthi-run health ministry.

The US Central Command (CENTCOM) has taken responsibility of the attack. “The Iran-backed Houthis use fuel to sustain their military operations,” CENTCOM said.

“Despite the Foreign Terrorist Designation that went into effect on 05 April, ships have continued to supply fuel via the port of Ras Isa,” the US military agency added in a statement on its official social media handle X (formerly Twitter).

The news has heightened the security concerns around the region largely controlled by the Iran-backed Houthi militants and supported Brent futures.

Downward pressure:

Brent crude’s price has come under pressure amid heightened global trade uncertainty, as Washington and Beijing continue to exchange tariffs and retaliatory measures.

Meanwhile, US President Donald Trump launched a fierce attack against US Federal Reserve chairman Jerome Powell on Monday, sending US stocks lower. Trump criticised Powell for not cutting interest rates, according to media reports.

“US President Donald Trump launched another broadside at Federal Reserve Chairman Jerome Powell on Monday, dialling up investor jitters,” VANDA Insights’ founder and analyst Vandana Hari said.

On the supply side, Iran and the US held another round of talks in Rome this weekend. Both parties met to address concerns over Tehran’s advancing nuclear programme, as Trump warned earlier of a potential military action should negotiations fail to yield a deal.

“A variety of factors put downward pressure on the market: persistent demand concerns amid tariff uncertainty; Trump’s pressure on the Fed; and progress in nuclear talks between the US and Iran,” analysts from ING Bank said.

By Aparupa Mazumder

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