Brent Crude Price Remains Above $107 Amid Middle East Tensions

The Brent crude oil price has remained above $107 per barrel due to ongoing supply concerns in the Middle East. The price of Brent crude has been trading close to $110 per barrel as tensions persist over Iran's willingness to engage in diplomacy, according to Washington.

However, Iranian officials have dismissed these claims, further adding to market uncertainty. Additionally, a recent attack by the Iran-backed Houthis on the 1,200 km East-West Pipeline has disrupted Riyadh's critical export route, which accounts for about 70% of its crude exports through the Red Sea terminal at Yanbu.

The pipeline shutdown could last for weeks, with some market analysts predicting that crude oil at Yanbu may deplete before the pipeline operations fully restore. ANZ Bank's senior commodity strategist Daniel Hynes noted that the Houthi group has also seized a strategic port and island directly on the Bab al-Mandeb Strait at the south end of the Red Sea.

In contrast, a recent report by the American Petroleum Institute (API) showed a significant increase in US crude stocks, which could put downward pressure on Brent's price. According to the API, US crude oil inventories increased by 7.14 million barrels in the week ending September 11.