Brent poised to end week near $110/bbl

The front-month ICE Brent contract has gained by $3.74/bbl on the day, to trade at $109.63/bbl at 09.00 GMT.

IMAGE: Crude oil storage tanks. Getty Images

Upward pressure:

Brent crude has felt upward pressure as concerns over oil supply disruptions in the Middle East continues to drive prices higher.

The US is expected to send more military personnels from its 82nd Airborne Division to the Middle East, Reuters reported citing two sources. The move would add to the huge military buildup in the region.

A further escalation could significantly intensify the conflict - now entering its fourth week - and deepen the disruption already felt across global markets, analysts said.

“With both sides continuing attacks and the US reportedly reinforcing its military presence in the region, concerns over supply disruptions remain elevated,” two analysts from ING Bank noted.

Downward pressure:

While there are no significant downward pressures on Brent’s price today, market participants will keep an eye on renewed possibilities of negotiations between the US and Iran.

The US is extending its pause on strikes targeting Iranian power plants by 10 more days, according to President Donald Trump.

“Oil prices steadied after US President Donald Trump again pushed back the deadline for striking Iran’s energy,” ING Bank analysts said.

Washington will not strike Iran’s energy facilities until 6 April at 20.00 ET (00.00 GMT), he said on the social media platform Truth Social.

“Extending the ceasefire takes some near-term heat out of the market,” the two analysts added.

By Aparupa Mazumder

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