Brent loses momentum amid ceasefire hopes

The front-month ICE Brent contract has declined by $1.58/bbl on the day, to trade at $95.00/bbl at 09.00 GMT.

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Upward pressure:

Brent’s price has felt some upward pressure as Iran said there has been “no tangible progress” in the ongoing negotiations with the US on a lasting ceasefire agreement that can ultimately reopen the Strait of Hormuz.

“No tangible progress has been achieved in the negotiation process,” Bloomberg quoted Iran’s foreign minister Abbas Araghchi as saying.

Despite Pakistan-mediated negotiations between Washington and Tehran to end hostilities, oil market analysts are sceptical as concrete details remain elusive.

“These on-again, off-again developments keep the market on edge,” Price Futures Group’s senior market analyst Phil Flynn said. “We’ll keep watching for actual implementation on the ground,” he added.

Downward pressure:

Brent’s price is on track to close the week with a decline following the US-brokered truce deal between Israel and Lebanon earlier this week.

Under the agreement, Tel Aviv and Beirut will immediately cease all regional hostilities.

Market analysts view this progress as a potential bridge to a comprehensive agreement with Tehran - a move essential to reopening the Strait of Hormuz.

“The oil market continues to trade on expectations of an imminent resumption in energy flows from the Persian Gulf,” two analysts from ING Bank noted.

By Aparupa Mazumder

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