Brent gains on supply risk premium
The front-month ICE Brent contract has gained by $0.80/bbl on the day, to trade at $73.03/bbl at 09.00 GMT.
IMAGE: Crude oil storage units. Getty Images
Upward pressure:
US President Donald Trump has threatened again – this time, Indian buyers of Russian crude.
Washington has threatened to impose a 25% tariff on all US imports of Indian goods from 1 August and an additional “penalty” for purchasing Russian crude oil and military equipment.
The news has stoked fears of trade disputes between the two economic partners and lent support to Brent crude’s price today, according to market analysts.
Indian energy firm Nayara Energy, backed by Russian state-run company Rosneft, has already trimmed run rates at its Russian refinery, said ANZ Bank’s senior commodity strategist Daniel Hynes.
The move has stocked “fears of exacerbated tightness in refined product markets that could bleed into oil prices,” he added.
Downward pressure:
Brent crude’s price felt some downward pressure after the US Energy Information Administration (EIA) reported a massive surge in crude stocks.
Commercial US crude oil inventories have risen by 7.7 million bbls to touch 427 million bbls for the week ending 25 July, according to data from the EIA.
“Weekly data from the Energy Information Administration was fairly bearish,” remarked two analysts from ING Bank.
A rise in US crude stocks can indicate lower demand for oil and weigh on Brent's price.
“The release was negative for the market, with total crude and product stocks rising to their highest levels since October 2024,” the two analysts added.
By Aparupa Mazumder
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