Brent Crude futures down after Iceland awards oil exploration licences

<p>Oil futures have lost ground after Iceland awarded new oil and gas exploration licences.</p>

Brent Crude Oil Futures have lost ground in commodities trading this morning (January 7th), after Iceland awarded oil and gas exploration and production licenses to two companies.

The permits have been given to Faroe Petroleum and Valiant Petroleum, while Norway has taken a 25 per cent stake in both via state-governed oil firm Petoro.

Iceland is hoping it will be able to make revenues from any discoveries of the fuels, particularly as experts have predicted the Arctic will be the next major oil-producing region.

The nation's minister of industries and innovation Steingrimur Sigfusson was quoted by the BBC as saying: "This is of course an important step, [as] these are the first real licences that we believe will be used and they call for extensive research in the area."

At 10:45 GMT, Brent Crude Oil Futures on the ICE Futures Europe Index dropped by 0.2 per cent to $111.06 per barrel.

Find out about commodities trading and learn CFD strategies at City Index. 

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.