Brent inches lower as Saudi Arabia restores Yanbu loading back to normalcy
The front-month ICE Brent contract has lost by $1.15/bbl on the day, to trade at $99.48/bbl at 09.00 GMT.
IMAGE: Getty Images
Upward pressure:
Brent crude’s price has held fairly steady amid mounting security concerns in the Middle East.
The US Central Command (CENTCOM) has established a new unit in the region, called Task Force Falcon, to deploy one-way attack drones “from above, on, and below the sea.”
Military support staff from the US and regional partners, including Bahrain, will jointly conduct the operation, CENTCOM said.
“Crude oil gained as tensions rose in the Middle East,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
The development comes amid news that Washington has sent a third aircraft carrier and an additional marine expeditionary unit up to 10,000 more troops to the Middle East.
“The prospect of renewed attacks by the US were heightened follow a report in the Wall Street Journal that it was sending a third aircraft carrier strike group to the Middle East,” Hynes added.
Downward pressure:
Brent crude’s price has come under downward pressure following reports that Saudi Arabia has resumed crude oil loadings at its Red Sea terminal of Yanbu.
Saudi Arabia has resumed oil tanker loadings from the port of Yanbu after restarting operations on the East-West Pipeline, Reuters reported.
Tanker loadings at Yanbu came to an abrupt halt earlier this month, following a drone attack on the key pipeline.
“Oil prices edged lower in early trading… as recovering Middle East export flows helped ease supply concerns,” two analysts from ING Bank noted.
By Aparupa Mazumder
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