Brent stable amid hopes of Middle East de-escalation
The front-month ICE Brent contract has gained by $0.10/bbl on the day, to trade at $99.43/bbl at 09.00 GMT.
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Upward pressure:
Brent crude has felt some upward pressure, as more commercial vessels came under air assaults this week.
An LPG tanker, attempting an outbound transit of the Strait of Hormuz, was hit by debris from unknown projectiles on Monday, the United Kingdom Maritime Trade Operations (UKMTO) agency reported.
A separate vessel, conducting an inbound transit into the strait, was struck by an unknown projectile, the UKMTO reported.
As of yesterday, only 12 vessels attempted to transit the Strait of Hormuz, market intelligence provider Windward reported. Of this, six vessels moved in dark mode, the data also showed.
Downward pressure:
Brent crude’s price has felt downward pressure amid growing market expectations of a diplomatic breakthrough in US-Iran negotiations and increased crude oil exports from Saudi Arabia.
US President Donald Trump told reporters that US officials had a “very good” three-hour meeting with Iranian representatives, at the ongoing United Nations General Assembly summit in New York earlier today.
“The first signs of diplomatic traction between the US and Iran can take enough heat out of energy prices,” SPI Asset Management managing partner Stephen Innes noted.
Additionally, Saudi Arabia has restarted operations at its 1,200 km East-West pipeline and could soon resume exports from the Red Sea terminal of Yanbu, Reuters reported citing sources.
These developments have “helped ease concerns over Middle East supply disruptions,” two analysts from ING Bank noted.
By Aparupa Mazumder
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