Brent moves higher amid Kazakh supply concerns
The front-month ICE Brent contract has gained $1.17/bbl up on the day, to trade at $64.93/bbl at 09.00 GMT.
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Upward pressure:
Brent crude’s price has edged higher amid renewed supply concerns.
The move followed OPEC+ producer Kazakhstan’s decision to halt output at its major Tengiz and Korolev oilfields due to power distribution disruptions.
Production at Tengiz oilfield was halted last week after a fire broke out at a power facility supplying the field.
Besides, the International Energy Agency’s (IEA) monthly oil market report provided some boost to Brent’s price today.
The agency revised its oil demand growth estimates for 2026 from 860,000 b/d to 930,000 b/d.
“[Oil market] sentiment was boosted by a slightly more positive outlook from the International Energy Agency,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
Downward pressure:
Brent’s price has felt some downward pressure after the American Petroleum Institute (API) reported a big rise in US crude stocks.
US crude oil inventories increased by 3.04 million bbls in the week ending 16 January, according to the API.
A rise in US crude stocks can indicate lower demand for oil and put some downward pressure on Brent's price, market analysts say.
By Aparupa Mazumder
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