Brent gains following Middle East flareup

The front-month ICE Brent contract has gained by $3.09/bbl on the day, to trade at $112.70/bbl at 09.00 GMT.

IMAGE: A crude oil tanker. Getty Images

Upward pressure:

Brent crude’s price has moved north of $110/bbl, following a fresh flareup in the Middle East conflict.

Iranian missiles and drones struck the UAE, including Fujairah port – a major Asian bunker hub.

“This port is important for UAE oil exports,” two analysts from ING Bank said. “It is situated outside the Strait of Hormuz, which allowed oil exports to continue… despite the war and blockade of the Strait,” they added.

Separately, two Iranian drones struck MV Barakah – an oil tanker operated by the UAE’s state-owned ADNOC, off Oman’s coast.

“A re-escalation of tensions in the Persian Gulf pushed oil and gas prices higher as the market once again reprices the duration of supply disruptions from the region,” two analysts from ING Bank noted.

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 rose by one to 408 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

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