Brent loses steam as some supply-related concerns ease
The front-month ICE Brent contract has declined by $1.57/bbl on the day, to trade at $102.71/bbl at 09.00 GMT.
IMAGE: Oil pumpjacks. Getty Images
Upward pressure:
Brent crude has felt some upward pressure amid escalating Middle East hostilities, with Saudi Arabia now directly involved in the conflict.
Vessel traffic through the Strait of Hormuz continues to remain well below the pre-war average of 140 daily transits, amid repeated attacks and the US Central Command’s (CENTCOM) ongoing blockade of the region.
As of Wednesday, 15 vessels attempted to transit the Strait of Hormuz – eight inbound and seven outbound – market intelligence provider Windward reported.
Out of this, nine vessels transited the region with their Automatic Identification System (AIS) turned off, Windward said.
Downward pressure:
Brent crude is poised to end the week lower after reports of ship-to-ship crude transfers eased some panic over Saudi export crisis.
Saudi Arabia is offering crude oil to Asian buyers via ship-to-ship transfer off Oman's Sohar port after drone attacks damaged its key East-West oil pipeline to the Red Sea, Reuters reported citing sources.
Moreover, Washington appears more optimistic than much of the market. Crude oil could be flowing out of the vital oil pipeline within days, Reuters reported, citing US energy secretary Chris Wright.
Riyadh is also trying to move oil through the Strait of Hormuz with US military assistance, Wright said on the sidelines of a G20 energy meeting.
By Aparupa Mazumder
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