Brent futures market closed today – here’s a recap of what drove prices this week

The ICE Brent Futures market is closed for trading today on account of Good Friday holiday. Front-month ICE Brent closed at $109.03/bbl on Thursday, which was $0.18/bbl higher than the price at 09.00 GMT on the day.

IMAGE: Crude oil storage facility. Getty Images
Upward pressure:

Brent futures traded firm this week, drawing support from recent geopolitical events that have rattled global markets.

Yemen‑based Houthi militant group joined the Middle East war last week by launching ballistic missiles towards Israel, raising concerns of a broader regional escalation.

The US Central Command (CENTCOM) said about 3,500 additional soldiers arrived in the Middle East earlier this week, while US President Donald Trump threatened to "blow up" Iran’s oil wells and power plants, as well as target Kharg Island and its desalination plants, if ongoing negotiations to reopen the Strait of Hormuz yield no outcome.

Meanwhile, Iran’s parliament approved a plan to levy tolls on vessels transiting the Strait of Hormuz, Iranian state media reported, without disclosing the toll fees.

“If Iran maintains effective control [of the Strait of Hormuz], the disruptions in the oil market will only persist,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

While there were no significant downward pressures on Brent’s price this week, market participants had an eye on emergency stock releases over the upcoming weeks, as a part of the International Energy Agency’s (IEA) commitment to ease some pressure on oil prices.

France released about 580,000 bbls of oil products under the IEA’s coordinated emergency stock release effort earlier this week.

Commercial US crude oil inventories also increased by 5.5 million bbls in the week ending 27 March, according to data from the US Energy Information Administration’s (EIA).

The EIA report comes a day after the American Petroleum Institute (API) reported a 10.3 million bbl increase in crude stocks over the same period.

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

By Aparupa Mazumder

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