Brent gains as US-Iran peace talks remain in deadlock

The front-month ICE Brent contract has gained by $3.35/bbl on the day from Friday, to trade at $108.04/bbl at 09.00 GMT.

IMAGE: Oil pumpjacks. Getty Images

Upward pressure:

Brent crude’s price has moved close to $110/bbl as peace negotiations between Washington and Tehran remain deadlocked.

US President Donald Trump has dismissed the seven-day peace deal proposed by Tehran on the sidelines of the United Nations General Assembly (UNGA) in New York last week.

The proposal, which has since been rejected, would have reopened the Strait of Hormuz to commercial navigation in exchange for Washington releasing all frozen Iranian assets.

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 three over the week to 455 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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