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Brent holds near $100 as Persian Gulf risks outweigh supply gains

ING analysts said attacks on Saudi infrastructure and the region’s oil-flow risk are helping keep Brent supported near $100/bbl despite improving supply conditions.

Reported · Written up by our desk · Energy

ICE Brent has been finding support near the $100 per barrel level, with ING analysts attributing the firmness to persistent geopolitical risks in the Persian Gulf that outweigh an improving supply backdrop, according to FXStreet.

ING pointed to attacks on Saudi infrastructure, including reports that Saudi Arabia’s East-West pipeline was targeted again, noting the pipeline had only recently returned to operation after an earlier attack and that flows remain at risk even if the latest attack did not appear to disrupt flows.

The analysts also cited adjustments by Gulf producers, including Kuwait producing at 75% of pre-war levels and Saudi Arabia cutting the official selling price of its Arab Light, while warning that European natural gas storage remains vulnerable ahead of winter.

FXStreet reported ING’s view that market nervousness is likely to persist until there are signs of progress in a US-Iran deal, which ING said could ease concerns about potential supply disruptions from the region.

Latest closeBrent $100.73 ▼1.5%|Nat gas $3.073 ▲1.2%

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