Brent inches lower following US crude stock build

The front-month ICE Brent contract has lost $0.40/bbl on the day, to trade at $76.05/bbl at 09.00 GMT.

PHOTO: Oil barrels. Getty Images

Upward pressure:

Brent’s price found some support amid uncertainties over global oil supply this year.

Earlier this week, Bloomberg reported that eight members of the OPEC+ consortium may consider delaying the 2.2 million b/d supply increase, which was set to begin from April this year.

Disruptions to Kazakhstan’s oil exports have also supported Brent’s price this week. Several Ukrainian drones struck pipeline operator Caspian Pipeline Consortium’s (CPC) pumping station on Monday, temporarily shutting it down.

The facility is located in the Kavkazsky district of southern Russia and transports over two-thirds of all oil exports from Kazakhstan, and crude from Russian oil fields, including those in the Caspian Region, CPC said.

“Supply uncertainty continues to support the oil market, which faces multiple risks, including disruptions to Kazakh flows, the potential for a delay in the return of OPEC+ barrels,” two analysts from ING Bank noted.

Downward pressure:

Brent futures erased gains after the American Petroleum Institute (API) reported another spike in US crude stocks.

Crude oil inventories in the US surged by 3.34 million bbls in the week that ended 14 February, according to the API estimates.

Notably, a surge in US crude stocks can indicate a drop in oil demand, which can cap Brent's price rise. The broadly followed US government data on crude oil stockpiles from the US Energy Information Administration (EIA) is due later today.

By Aparupa Mazumder

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