Brent steady amid renewed Middle East strikes

The front-month ICE Brent contract has inched $0.01/bbl higher on the day from Friday, to trade at $72.57/bbl at 09.00 GMT.

IMAGE: Getty Images

Upward pressure:

Brent’s price has felt upward pressure amid renewed strikes in the Middle East.

Over the weekend, the US and Iran exchanged fire – further destabilising the region and threatening the fragile 60-day US-Iran peace deal.

Iran’s navy struck a Panama-flagged oil tanker that was attempting to transit the Strait of Hormuz on Saturday. The vessel was carrying over 2 million bbls of crude oil.

In response, the US Central Command (CENTCOM) launched strikes on Iranian military targets.

Simultaneously, the Israel Defense Forces (IDF) confirmed strikes on three command centers in Nabatieh and Mayfadoun in Lebanon, further complicating the geopolitical landscape that underpin the stability of the Middle East region.

Downward pressure:

Brent crude’s price has felt some downward pressure after Baker Hughes reported a big rise in US crude oil rig activity.

The total number of rigs drilling for crude oil in the US increased by seven to 440 units last week.

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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