Brent holds ground as inventory draw counters supply risk easing
The front-month ICE Brent contract has remained unchanged on the day, to trade at $68.24/bbl at 09.00 GMT.
IMAGE: Getty Images
Upward pressure:
Brent crude's price has found support after the US Energy Information Administration (EIA) released its latest weekly oil inventory data.
US commercial crude stocks fell by 3.5 million bbls to 420.3 million bbls in the week ending 30 January, a decline that is commonly seen as a sign of stronger demand.
Brent futures have also been buoyed by a trade agreement between the US and India, under which India has agreed to increase purchases of US oil while cutting imports of Russian crude.
If the agreement is implemented, it could prompt Moscow to curb production, tightening global oil supply, according to two analysts at ING Bank.
Downward pressure:
Oil prices have come under downward pressure as supply concerns eased and market attention shifted to the outcome of US–Iran talks expected later in the day.
Crude futures faced downward pressure “amid signs of easing supply risks. Iran confirmed that it would hold negotiations with the US, allaying concerns of US military action which could threaten oil exports from the OPEC member,” said Daniel Hynes, senior commodity strategist at ANZ Bank.
“Aside from the US–Iran talks, there is little else on the market radar to sway price sentiment, and some mixed signals in the physical market, effectively cancelling each other out,” added Vandana Hari, founder of VANDA Insights.
By Tuhin Roy
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