Brent moves higher on supply disruption concerns
The front-month ICE Brent contract has gained by $0.17/bbl on the day, to trade at $69.77/bbl at 09.00 GMT.
IMAGE: Oil barrels. Getty Images
Upward pressure:
The ongoing Middle Eastern supply uncertainty has supported Brent’s price this week, with market analysts laser focused on any development in talks between Tehran and Washington.
“Lingering uncertainty over Iran continues to buoy the market,” two analysts from ING Bank noted.
In its latest monthly market report, the Saudi Arabia-led OPEC group maintains its global oil demand growth projection for 2026 at 1.4 million b/d to average 106.52 million b/d for the year.
“These [OPEC] numbers remain above most other demand growth forecasts,” ING Bank analysts said.
Global oil consumption in 2027 is expected to grow by about 1.3 million b/d, to average 107.9 million b/d.
Downward pressure:
Brent crude’s price has felt some downward pressure after the US Energy Information Administration (EIA) reported a big rise in US crude stocks.
Commercial US crude oil inventories have increased by 8.5 million bbls to 428.8 million bbls for the week ending 6 February, according to data from the EIA.
The surge in crude stocks was “the largest increase since January 2025,” ING Bank’s analysts added.
A rise in US crude stocks can indicate lower demand for oil and put some downward pressure Brent's price, market analysts say.
By Aparupa Mazumder
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