Brent gains as Iran hardens stance against US

The front-month ICE Brent contract has gained by $1.21/bbl on the day, to trade at $92.76/bbl at 09.00 GMT.

IMAGE: Oil pump jacks. Getty Images

Upward pressure:

Brent crude’s price has found some support as Iran hardened its stance against the US.

Iran’s security council secretary Mohsen Rezaei said in a televised interview that Iran will not allow any enriched nuclear material to leave the country and warned of consequences if the US launches new strikes, Reuters reported.

Washington has said nuclear issues must be part of any initial negotiations to end the war, Reuters reported.

Rezaei also dismissed claims that talks with Washington are under way and said reports of a recent meeting in Qatar were “pure lies” meant to calm energy markets and curb oil prices.

Crude oil exports from the Middle East “continue to rely on alternative routes around the Strait of Hormuz, leaving supply vulnerable to further disruption,” two analysts at Dutch bank ING said.

Downward pressure:

Brent’s gains have been capped by a recovery in Middle East oil output and a build in US crude stocks.

OPEC’s crude production rose by almost 2 million b/d in October to 27.16 million b/d, led by Saudi Arabia, Iraq and Kuwait, ING’s analysts said. Output from Saudi Arabia, the group’s de facto leader, climbed to 9.2 million b/d, close to pre-war levels.

Meanwhile, US crude oil inventories rose by 9 million bbls in the week ending 6 November, according to estimates from the American Petroleum Institute (API).

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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