Brent breaks above the $80/bbl mark

The front-month ICE Brent contract gained $2.15/bbl on the day, to trade at $80.10/bbl at 09.00 GMT.

PHOTO: An oil pumpjack. Getty Images

Upward pressure:

Brent prices moved higher following an alleged Ukrainian airstrike on the Russian energy firm Novatek's Ust-Luga fuel export terminal, igniting supply disruption worries in the oil market. This news has raised concerns about the conflict between Russia and Ukraine taking a fresh turn, which might impact Russia’s oil production and push oil prices further up.

“Global supply disruptions have propped up the market to start the week amid the Middle East conflagration, which continues to underpin oil prices,” said SPI Asset Management’s managing partner Stephen Innes.

The US and UK military carried out additional airstrikes on Iran-aligned Houthi bases, which are reportedly utilised for targeting global merchant vessels and US Navy ships, the US Central Command (CENTCOM) said.

“The targets included missile systems and launchers, air defense systems, radars, and deeply buried weapons storage facilities,” the US CENTCOM said.

Downward pressure:

Some downward pressures acting on Brent futures include the resumption of oil production in Libya’s largest oil field.

Libya's National Oil Corporation has lifted force majeure on the El-Sharara oil field and resumed production, following a two-week halt due to local protests. The El-Sharara oil field produces 300,000 b/d of crude.

“The National Oil Corporation announces the lifting of force majeure on the Sharara field and the resumption of production,” it posted on X, formerly Twitter.

“Reports that had declared a force majeure on the Sharara oil field that was shut down for 2 weeks overshadowed the loss of barrels from Russian export delays,” said Price Futures Group's senior market analyst Phil Flynn.

By Aparupa Mazumder

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