Brent gains as US forms Middle East task force

The front-month ICE Brent contract has gained by $0.46/bbl on the day, to trade at $87.83/bbl at 09.00 GMT.

IMAGE: Oil pumpjack. Getty Images

Upward pressure:

Brent’s price is poised to end the week higher than it began, amid growing hostilities between the US and Iran, in the Middle East.

The US Central Command (CENTCOM) has established a “multinational attack drone task force,” it said.

The unit – called Task Force Falcon Strike – will deploy one-way attack drones on targets in the Middle East, consisting of unmanned systems operated by military support staff from the US and regional partners, CENTCOM said.

Downward pressure:

Brent’s price has felt some downward pressure after global oil watchdogs slashed oil demand projection for 2026.

The Organization of the Petroleum Exporting Countries (OPEC) has reduced its global oil demand growth projection for 2026, to about 600,000 b/d.

Meanwhile, Paris-based International Energy Agency (IEA) expects global oil demand to shrink by 1.6 million b/d in 2026.

“The IEA now expects global oil demand to fall by 1.6m b/d YoY in 2026 [1.6 million b/d year-on-year] due to Persian Gulf disruptions and elevated fuel prices,” two analysts from ING Bank noted.

By Aparupa Mazumder

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