Brent sheds earlier gains

The front-month ICE Brent contract has lost $1.00/bbl on the day, to trade at $84.20/bbl at 09.00 GMT.

PHOTO: Oil pump jack and barrels with the Iraqi flag. Getty Images

Upward pressure:

Brent futures continued to gain support amid concerns over supply tightening.

“Oil prices should remain supported going forward as OPEC+ remains committed to keeping the market tight and as the Russia – Ukraine war could threaten Russian crude exports,” said OANDA’s senior market analyst Ed Moya.

Moreover, travel during the summer season is expected to boost oil demand in the US.

News reports that the US is refilling its strategic petroleum reserve (SPR) amid a steady rise in the country’s oil demand also supported Brent futures, Ed Moya said.

“The SPR should be poised to receive another 2 million bbls before the end of summer,” he added in a note. US crude oil stocks in the SPR were at 346 million bbls as of 31 July.

Downward pressure:

Brent shed previous gains as concerns about the global tight supply eased after Reuters reported that Iraq’s oil minister Hayan Abdel-Ghani is expected to discuss the resumption of Iraqi oil exports with his counterpart in Turkey.

Abdel-Ghani arrived in Turkey on Monday, Reuters reported.

Speculations that Iraq will now resume its oil supply through the Ceyhan oil terminal in Turkey weighed down Brent futures.

Turkey suspended Iraq’s crude oil exports of 450,000 b/d through the Iraq-Turkey pipeline in northern Iraq on 25 March after an arbitration ruling by the International Chamber of Commerce (ICC).

By Aparupa Mazumder

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