Brent rises amid mounting oil supply concerns

The front-month ICE Brent contract has risen by $1.36/bbl on the day, to trade at $113.73/bbl at 09.00 GMT.

IMAGE: Flags of the US, Iran and Israel. Getty Images

Upward pressure:

Brent futures have extended their gains from Thursday as concerns over supply disruptions in the Middle East continue to mount.

Saudi Arabia’s state-owned oil company Aramco has told its staff to evacuate the company’s headquarters in Dhahran, as fighting between Saudi forces and Yemen-based Houthis has intensified, Reuters reported.

“Reports suggest President Trump is considering fresh strikes on Iran, while the US is reinforcing its military presence in the region with the deployment of a second aircraft carrier,” analysts from ING Bank said.

Meanwhile, Iran has threatened to strike oil and AI facilities across seven Gulf countries if the US and Israel launch fresh attacks on Iran, The Guardian reported, citing Iran’s National Security Council secretary Mohsen Rezaei.

Downward pressure:

Brent’s price has come under some downward pressure following reports that Russia agreed on Wednesday to participate in US-mediated peace talks with Ukraine, starting next month.

Additionally, an oil tanker carrying 40,000 mt of Russian diesel is heading towards New York, Reuters reported. The move follows US President Donald Trump's announcement of the diesel purchase deal with Russian President Vladimir Putin on 9 October.

By Shilpa Sharma

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