Brent gains after vessel attacked off Oman’s coast

The front-month ICE Brent contract has gained by $1.33/bbl on the day, to trade at $72.95/bbl at 09.00 GMT.

IMAGE: Oil pump jacks. Getty Images

Upward pressure:

Brent’s price has moved higher after commercial ships transiting the Strait of Hormuz came under attack once again.

An LNG carrier, Al Rekayyat, was hit by an unknown projectile on the port side causing a fire earlier today, the United Kingdom Maritime Trade Operations (UKMTO) reported. The vessel was laden with LNG when it came under attack.

Moreover, Iran's Islamic Revolutionary Guard Corp (IRGC) has launched at least two missiles at commercial ships transiting through the Strait of Hormuz via the Omani corridor yesterday.

The initial rebound in vessel transits through the region after the US-Iran temporary peace accord “has stalled”, ANZ Bank’s senior commodity strategist Daniel Hynes said, adding that vessel crossings remain “in single digits and no sustained recovery [is] evident”.

Downward pressure:

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

The total number of rigs drilling for crude oil in the US increased by five over the week, to 445 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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