Iran turmoil pushes Brent higher

The front-month ICE Brent contract has gained by $0.26/bbl on the day, to trade at $64.87/bbl at 09.00 GMT.

IMAGE: Getty Images

Upward pressure:

Rising unrest in Iran has continued to support Brent crude’s price this week.

In a social media post, US President Donald Trump has urged Iranians to continue demonstrations against the Islamic Republic’s regime led by Supreme Leader Ayatollah Ali Khamenei.

He also said that all meetings with Iranian officials had been cancelled, raising the prospect of a US intervention, market analysts noted.

“Markets are on high alert” following the latest escalation in Iran, according to Price Futures Group’s senior market analyst Phil Flynn.

Downward pressure:

Brent’s price has felt some downward pressure after the American Petroleum Institute (API) reported a huge surge in US crude stocks.

US crude oil inventories increased by a whopping 5.3 million bbls in the week ending 9 January, according to the API report.

Meanwhile, market analysts expected a draw of 2 million bbls.

A rise in US crude stocks can indicate lower demand for oil and put some downward pressure on Brent's price.

By Aparupa Mazumder

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