Brent declines following US inventory build
The front-month ICE Brent contract has lost by $1.57/bbl on the day, to trade at $103.67/bbl at 09.00 GMT.
IMAGE: Oil storage facility. Getty Images
Upward pressure:
Brent crude’s price has continued to trade well above the $100/bbl threshold, after US President Donald Trump dismissed claims of easing economic sanctions on Iran.
Media reports suggesting that Trump has offered to release frozen Iranian funds, in exchange for Tehran to reopen the Strait of Hormuz to commercial navigation, are false, Trump said on social media platform Truth Social.
The statement comes amid stalled mediation efforts between Washington and Tehran, following a complete absence of diplomatic breakthrough at the United Nations General Assembly summit in New York earlier this month.
Notably, Tehran has actively demanded that the White House releases its frozen assets in order to restore vessel movement through the Strait of Hormuz back to normalcy.
Oil prices remain more than 60% higher year-to-date, amid the ongoing escalation in the Middle East, that has now pulled Saudi Arabia into it, two analysts from ING Bank noted.
Downward pressure:
Brent crude’s price has felt some downward pressure after the American Petroleum Institute (API) reported a rise in US crude stocks.
US crude oil inventories increased by 1.02 million bbls in the week ending 25 September, the API reported.
Market analysts had expected an inventory draw of 578,000 b/d instead, ING Bank’s analysts added.
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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