Brent gains amid Israel-Iran standoff
The front-month ICE Brent contract has gained by $2.36/bbl on the day from Friday, to trade at $97.36/bbl at 09.00 GMT.
IMAGE: Crude oil storage facility. Getty Images
Upward pressure:
Brent crude’s price has opened the week on a higher note after Israel and Iran engaged in hostilities over the weekend.
On Sunday, Israel struck a Hezbollah-controlled command centre in Beirut, Lebanon, its defense forces said. The attack came after the Lebanon-based militant group targeted northern Israel with missiles.
Hours later, Iran and Israel exchanged fire, with the Israel Defense Forces (IDF) striking military sites in western and central Iran.
The attacks have reignited disruption concerns as market analysts flagged its impact on the ongoing peace negotiations between the US and Iran.
“Every military response forces [oil] traders to widen the range of possible outcomes,” SPI Asset Management managing partner Stephen Innes noted.
Downward pressure:
Brent crude’s price has felt some 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 to 431 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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