Brent sheds ahead of OPEC+ meeting

The front-month ICE Brent contract has lost by $0.29/bbl on the day, to trade at $68.86/bbl at 09.00 GMT.

IMAGE: Oil storage tanks. Getty Images

Upward pressure:

Brent’s price has found some support as geopolitical tensions remain in focus.

The US has imposed sanctions on a network of shipping companies and nine vessels for allegedly smuggling Iranian oil disguised as Iraqi oil.

By tightening sanctions, the Trump-led US administration aims to reinforce its push to cut the OPEC producer’s oil exports to zero.

Besides, risks to oil supply have intensified as Russia and Ukraine continue cross-border shelling. “This [attacks] comes as the US looks to increase sanctions on Russia to force it to the negotiating table,” remarked ANZ Bank’s senior commodity strategist Daniel Hynes.

Over the weekend, Ukraine struck two major oil refineries in Russia while Moscow carried out a massive attack on 14 regions of Ukraine, according to media reports.

“US Treasury Secretary Scott Bessent said that US would examine possible penalties against Moscow this week,” Hynes added.

Downward pressure:

Brent futures came under downward pressure as market analysts turned their focus to the upcoming OPEC+ meeting on Sunday.

The group is “expected to keep output levels unchanged,” according to two analysts from ING Bank.

The global oil market is bracing for a potential surplus as the Vienna-based group has accelerated the rollback of 2.2 million b/d in voluntary output cuts over the past six months, moving faster than originally planned.

“The bigger risk is OPEC+ deciding to reinstate supply cuts, given concerns about a surplus,” the two analysts added.

By Aparupa Mazumder

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