Brent steady amid Hormuz blockade claims
The front-month ICE Brent contract has lost by $0.35/bbl on the day, to trade at $83.51/bbl at 09.00 GMT.
IMAGE: Getty Images
Upward pressure:
Brent’s price has held steady on the back of a full-blown conflict between US-Israel and Iran.
Iran’s Islamic Revolutionary Guard Corps (IRGC) has completely sealed the Strait of Hormuz, according to media reports.
The news comes as continued airstrikes in the region have significantly escalated maritime security threats.
“Concerns are centred on the flow of supply through the Strait of Hormuz,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
About 20% of global oil supply transits the vital waterway, according to analysts.
“With producers unable to export their oil they are having to stockpile stranded supplies in storage tanks,” Hynes added.
Downward pressure:
Brent’s price has felt some downward pressure after the US Energy Information Administration (EIA) reported a rise in US crude stocks.
Commercial US crude oil inventories have increased by 3.5 million bbls to 439 million bbls for the week ending 27 February, according to data from the EIA.
A rise in US crude stocks can indicate lower demand for oil and put some downward pressure Brent's price.
By Aparupa Mazumder
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