Brent inches lower as market eyes Russia-Ukraine ceasefire deal

The front-month ICE Brent contract has lost $0.38/bbl on the day from Friday, to trade at $74.98/bbl at 09.00 GMT.

PHOTO: Oil barrels. Getty Images

Upward pressure:

Brent’s price found some support from supply concerns emerging in the Middle East.

In an interview with Fox Business, US treasury secretary Scott Bessent said that Washington’s top priority is to curb Iran’s energy and oil exports by imposing stricter sanctions.

Stricter sanctions are expected to drain the revenues Tehran uses to fund regional armed groups, Bessent claimed. Iran’s total oil exports currently stand at around 1.6 million b/d, Bloomberg reports.

“Crude oil prices rallied… after the US’s treasury secretary, Scott Bessent, told Fox Business that the US will seek to slash Iranian oil exports,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

Brent’s price dipped as market participants shifted focus on developments in Europe.

Last week, US President Donald Trump said that a possible ceasefire agreement between Russia and Ukraine is under discussion. If finalized, the deal could help alleviate sanctions on Russia’s energy sector.

“US and Russia talks working towards a peace deal between Russia and Ukraine will weigh on [market] sentiment,” two analysts from ING Bank said.

President Trump and Russian counterpart Vladimir Putin are set to hold further negotiations in Saudi Arabia next week, Reuters reports.

By Aparupa Mazumder

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