Brent eases as year-end lull dampens market activity
The front-month ICE Brent contract has lost $0.12/bbl on the day from Wednesday, to trade at $62.44/bbl at 09.00 GMT.
IMAGE: Oil storage tanks. Getty Images
Upward pressure:
Brent crude’s price has drawn some support from heightened risks to global supply stemming from developments in Venezuela and Russia.
Ongoing attacks by Russia and Ukraine targeting each other’s energy assets have increased fears of supply disruptions.
Meanwhile in Venezuela, oil exports face fresh uncertainty after the US intercepted an oil tanker last week.
Washington has increased economic pressure on Venezuelan oil shipments and carried out airstrikes against Islamic State militants in Nigeria’s Sokoto state, Reuters reported.
Venezuela and Nigeria are both major producers in the global oil market.
Downward pressure:
This week’s oil inventory data from the American Petroleum Institute (API) has put downward pressure on Brent crude’s price.
API data showed that stockpiles rose by 2.4 million bbls in the week ending 19 December.
Crude stock builds are typically seen as a signal of weaker demand and often put downward pressure on oil prices, according to market analysts.
“The market will have to wait till Monday for corresponding data from the Energy Information Administration [EIA],” VANDA Insights’ founder Vandana Hari remarked.
The EIA report has been delayed this week due to the Christmas holiday.
By Aparupa Mazumder
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