Oil edges down as investors weigh possible US sanctions on 'shadow fleet'
USO•Oil prices edged lower as investors weighed Middle East risks and possible US steps to ease restrictions on shadow fleet tankers. Brent fell 41 cents to $105.51 a barrel, while WTI dropped 54 cents to $97.43.
1. Oil prices slip
Brent crude futures fell 41 cents, or 0.39%, to $105.51 a barrel, while US West Texas Intermediate crude futures declined 54 cents, or 0.55%, to $97.43. WTI had settled up more than 3% on Thursday after a large draw in US crude stocks, while Brent was little changed.
2. Supply and sanctions
The International Energy Agency agreed to release more than 20 million barrels of diesel, along with any oil remaining from a record emergency-reserve release pledged in March. The Trump administration is considering lifting sanctions on some shadow fleet vessels that have transported oil and petroleum products from Russia, Iran and Venezuela to reduce record-high global freight rates, a US official said.
3. Regional tensions
Conflict involving Saudi Arabia and Yemen's Houthis and renewed attacks on ships in the region supported prices. Iran said it was stepping up strikes in response to a US blockade of its ports and tougher sanctions introduced last month; the Houthis fired missiles at the presidential palace complex in Aden on Thursday, killing two guards.
