EIA crude stocks report weighs on Brent

The front-month ICE Brent contract has declined by $0.23/bbl on the day, to trade at $70.83/bbl at 09.00 GMT.

IMAGE: Oil storage facility. Getty Images

Upward pressure:

Brent’s price has felt some upward push over supply disruption concerns as US envoys, Steve Witkoff and Jared Kushner, meet representatives from Iran for a third round of indirect talks later today in Geneva.

“It’s a big day for oil markets with all eyes on US-Iran nuclear talks,” two analysts from ING Bank said.

Both countries are expected to discuss Iran’s nuclear capabilities – something Washington has repeatedly opposed.

“The principle is very simple: Iran cannot have a nuclear weapon,” Reuters cited US Vice President JD Vance as saying.

Iran is the fourth-largest OPEC member, producing around 3.2 million b/d of crude oil – which faces disruption threats if a deal is not finalised, market analysts said.

“Longer-term action from the US, with more aggressive retaliation from Iran, would increase supply risks for the oil market. This would make any further price increases more sustainable,” ING Bank’s analysts added.

Downward pressure:

Brent’s price has come under downward pressure after the US Energy Information Administration (EIA) reported a massive increase in US crude stocks.

Commercial US crude oil inventories have increased by 16 million bbls to 436 million bbls for the week ending 20 February, according to data from the EIA.

“The increase was dominated by inventory builds on the [US] Gulf Coast,” ING Bank’s analysts said.

A rise in US crude stocks can indicate lower demand for oil and put some downward pressure Brent's price.

The EIA data comes one day after the American Petroleum Institute (API) reported a staggering 11.4 million-bbl rise in US crude stocks.

By Aparupa Mazumder

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