Brent moves closer to $100/bbl again

The front-month ICE Brent contract has gained by $6.89/bbl on the day, to trade at $97.89/bbl at 09.00 GMT.

IMAGE: Oil storage tanks. Getty Images

Upward pressure:

Brent has moved closer to $100/bbl mark once again, following major disruptions in the Persian Gulf.

Over last night, two tankers caught fire after being struck by Iranian missiles in Iraqi territorial waters, according to Iraq’s national oil marketer State Oil Marketing Company (SOMO).

Iraq’s oil ports have completely ceased operations following the attacks, Reuters reported.

The latest attacks mark an escalation in the Middle East conflict, raising the number of vessels struck in the region ‌to at least 16, the report added.

“There are no signs of de-escalation in the Persian Gulf, so there is no end in sight to the disruptions to oil flows through the Strait of Hormuz,” two analysts from ING Bank said.

Downward pressure:

Brent’s price rally somewhat eased after the US Energy Information Administration (EIA) reported a surge in US crude stocks.

Commercial US crude oil inventories increased by 3.8 million bbls to 443 million bbls in the week ending 6 March, according to data from the EIA.

A rise in US crude stocks can indicate lower demand for oil and put some downward pressure Brent's price.

By Aparupa Mazumder

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