Brent sheds some after Trump abandons Hormuz plan
The front-month ICE Brent contract has inched $0.44/bbl lower on the day, to trade at $84.24/bbl at 09.00 GMT.
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Upward pressure:
Brent crude’s price has felt some upward pressure after the US Energy Information Administration (EIA) reported a decline in US crude stocks.
Commercial US crude oil inventories decreased by 1.7 million bbls, to 409.7 million bbls, in the week ending 10 July, according to data from the EIA.
A drop in US crude stocks can indicate higher demand for oil and put some upward pressure on Brent's price.
“US commercial crude oil inventories remain near the lowest levels since 2022, while seasonally they are at their lowest level since 2018,” two analysts from ING Bank noted.
Downward pressure:
US President Donald Trump quickly abandoned plans to impose a 20% fee of a cargo’s value for the US to assist in safely transiting the Strait of Hormuz – this has continued to put some downward pressure on Brent’s price.
Moving away from his previous “reimbursement fee” rhetoric, Trump now aims to secure trade deals with Gulf states instead.
The US administration has remained silent on the specifics of the trade and investment framework Trump claims these nations will adopt with Washington.
By Aparupa Mazumder
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