Brent finds support after US targets Iran-linked oil tankers
The front-month ICE Brent contract has gained by $1.44/bbl on the day from Friday, to trade at $96.56/bbl at 09.00 GMT.
IMAGE: Oil processing unit. Getty Images
Upward pressure:
Brent’s price has moved higher following major escalation in the Middle East region.
The US Navy struck three Iran-linked crude oil tankers over the weekend, the US Central Command (CENTCOM) said on social media platform X.
“The oil market remains well-supported with little sign of peace between the US and Iran,” two analysts from ING Bank noted.
The action came shortly after Iranian forces launched ballistic missiles toward two US warships patrolling regional waters, CENTCOM said.
Meanwhile, Tehran has threatened a new “restricted zone” outside the Strait of Hormuz, Al Jazeera reported.
If imposed, the move “could put additional vessels in the Gulf of Oman at risk,” ING Bank’s analysts added.
Downward pressure:
Brent crude’s price has faced little downward pressure after Baker Hughes reported a rise in US crude oil rig activity.
The total number of rigs drilling for crude oil in the US increased by two over the week to 449 units last week.
The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.
By Aparupa Mazumder
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