Brent steady as US weighs easing sanctions on global 'shadow fleet'
USO•Brent was up 2 cents at $106.08 a barrel as investors weighed possible US steps to ease restrictions on the shadow fleet. US crude inventories fell by 8.6 million barrels, while WTI rose 3.11% to $98.05.
1. Sanctions under discussion
Brent crude was little changed as investors weighed possible US steps to ease restrictions on the world’s shadow fleet of tankers. A US official said the discussions centre on potentially allowing “legal oil” to flow on previously sanctioned vessels. The Department of Energy said any move would not help Russia move oil or oil products.
2. US inventory draw
US crude inventories fell by 8.6 million barrels to 415.6 million in the week ended October 9, compared with analysts’ expectations for a 288,000-barrel draw, the Energy Information Administration said. Distillate inventories also fell, while gasoline inventories rose. WTI was up $2.96, or 3.11%, at $98.05 a barrel.
3. Geopolitical risks and supply
Attacks on ships near the Strait of Hormuz and conflict between Saudi Arabia and Yemen’s Houthis supported a geopolitical risk premium in oil markets. Ukraine resumed attacks on Russian refineries, while the International Energy Agency agreed to release more than 20 million barrels of diesel and any oil remaining from a March emergency reserves release.
