Brent opens 2026 on a softer note
The front-month ICE Brent contract has declined by $0.42/bbl on the day from Wednesday, to trade at $60.72/bbl at 09.00 GMT.
IMAGE: Oil storage tanks. Getty Images
Upward pressure:
Brent futures have gained some support following the release of the US Energy Information Administration's (EIA) weekly oil inventory report.
Commercial US crude oil inventories decreased by 1.9 million bbls to around 423 million bbls in the week ending 26 December, according to data from the EIA.
A decline in US crude stocks usually signals stronger demand and can offer some support to Brent’s price.
Downward pressure:
Brent crude’s price has inched lower on the first trading day of 2026.
US crude oil production hit a record high of 13.87 million b/d in October last year, Reuters reported citing data from the EIA.
The record-high output in the world’s largest oil consumer has reinforced downside pressure on Brent, as rising production signals ample supply in a market that is already grappling with concerns of oversupply.
The total number of rigs drilling for crude oil in the US rose by three to 409 units last week, according to Baker Hughes.
The US oil rig count is seen as an indicator of future oil production. It reflects how much oil drilling activity is happening or expected to happen in the shale sector.
By Aparupa Mazumder
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