Brent gains amid repeated vessel attacks

The front-month ICE Brent contract has gained by $2.60/bbl on the day, to trade at $101.60/bbl at 09.00 GMT.

IMAGE: Oil storage facility. Getty Images

Upward pressure:

Brent crude’s price has remained above $100/bbl as supply risks from the Persian Gulf continue to linger amid ongoing attacks on commercial vessels.

“Oil supplies from the Persian Gulf continue to improve. Yet the market is reluctant to get too carried away given that supply risks from the region remain elevated,” two analysts from ING Bank noted.

An oil tanker was struck by an unknown projectile within the Persian Gulf on Monday, while attempting an outbound transit, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.

“There is a clear tug-of-war at the moment between improving supply from the region and lingering threats to supply,” ING Bank’s analysts said.

Downward pressure:

Brent's gains were capped as Persian Gulf crude output showed signs of recovery, with regional operators adapting to the shifting geopolitical landscape.

Kuwait is reportedly producing at 75% of pre-war levels, Bloomberg reported, citing Kuwait Petroleum Corporation (KPC) chief executive Sheikh Nawaf Saud Al-Sabah.

Saudi Arabia has also reduced the official selling price (OSP) of the Arab Light to Asia for November loadings, Reuters reported.

“Iraq is hiring additional vessels to send oil through Hormuz”, a sign of an improving supply conditions, ANZ Bank’s senior commodity strategist Daniel Hynes said.

By Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online