Brent moves higher amid supply-related concerns

The front-month ICE Brent contract has risen by $0.50/bbl on the day, to trade at $62.56/bbl at 09.00 GMT.

IMAGE: Oil storage facility. Getty Images

Upward pressure:

Concerns over potential supply disruptions from Venezuela and Russia have lent support to Brent crude’s price.

Russia's and Ukraine's recurring attacks on each other's energy infrastructure have lifted Brent’s price up today, according to market analysts.

Meanwhile, more than a dozen loaded vessels in Venezuela await new directions from their owners after the US seized the oil tanker Skipper earlier this month and targeted two additional vessels over the weekend, Reuters reported.

US President Donald Trump last week barred all sanctioned vessels from entering or leaving Venezuela, escalating pressure on Venezuelan President Nicolás Maduro to step down.

Downward pressure:

Brent crude’s price has come under mild downward pressure after the American Petroleum Institute (API) reported a rise in US crude inventories.

According to API, US crude stockpiles climbed by 2.4 million bbls in the week ending 19 December.

Inventory builds are generally viewed as a sign of softer demand and tend to weigh on oil prices.

By Aparupa Mazumder

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