Brent inches up on US-Iran tensions
The front-month ICE Brent contract has gained by $0.20/bbl on the day, to trade at $69.60/bbl at 09.00 GMT.
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Upward pressure:
Brent futures have found support amid rising geopolitical risk, as talks between the US and Iran remain fragile. Negotiations are ongoing but uncertain, sustaining a risk premium, with continued sanctions pressure and tariff threats linked to Iranian trade, according to a Reuters report.
“Oil prices continue to hold firm… as persistent uncertainty over how talks between the US and Iran evolve,” two analysts from ING Bank said.
Additional support has come from signs of a narrowing supply surplus, underpinned by improved demand from India.
Indian refiners are reportedly steering clear of Russian crude purchases to help secure a trade agreement with the US, while increasing imports from the Middle East and West Africa, Reuters reported.
Downward pressure:
Brent futures have come under some downward pressure after the American Petroleum Institute (API) reported a sharp increase in US crude inventories.
US crude oil stocks rose by 13.4 million bbls in the week ending 6 February, according to API estimates cited by Trading Economics. An increase in crude inventories typically points to softer demand and can weigh on oil prices.
“The American Petroleum Institute’s stocks data for the week to February 6 was bearish,” said Vandana Hari, founder of VANDA Insights.
By Tuhin Roy
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