Brent steady as market focuses on Iran-US nuclear talks

The front-month ICE Brent contract has inched $0.10/bbl lower on the day, to trade at $71.44/bbl at 09.00 GMT.

IMAGE: Oil pump jacks. Getty Images

Upward pressure:

Brent crude’s price has found support after the US Energy Information Administration (EIA) reported a massive drop in crude stocks.

Commercial US crude oil inventories have decreased by 9 million bbls to 420 million bbls for the week ending 13 February, according to data from the EIA.

A drop in US crude stocks usually signals stronger demand and can offer some support to Brent’s price.

The EIA data provided support to Brent’s price “with a bullish release,” two analysts from ING Bank noted.

Meanwhile, recent comments from US President Donald Trump have put some upward pressure on Brent, according to market analysts.

Trump has set a deadline of 10-15 days for Iran to make a deal with Washington over its nuclear program, or "really bad things" will happen, Reuters reported.

“Any outbreak of fighting would jeopardise flows from a region that pumps about a third of the world’s supplies,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

There are no significant downward pressures on Brent’s price momentarily, however, market analysts remain cautious about further developments in the Iran-US nuclear talks.

Earlier this week, representatives from both nations met for negotiations in Geneva, Switzerland.

Washington said that Iran will submit a detailed proposal in the coming two weeks, according to another Reuters report.

By Aparupa Mazumder

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