Oil prices ease as investors weigh supply outlook, Middle East tensions
USO•Oil prices fell more than 1% as investors weighed Middle East shipping attacks against potential US sanctions relief for some oil vessels. Brent was down 1.7% at $104.30 a barrel and WTI fell 1.1% to $94.03; US crude inventories dropped 11.1 million barrels last week, according to industry data.
1. Prices reverse gains
Brent crude futures fell $1.76, or 1.7%, to $104.30 a barrel, while US West Texas Intermediate futures dropped $1.06, or 1.1%, to $94.03 by 0625 GMT on Thursday. WTI had climbed to a three-week high in the previous session.
2. Shipping risks and sanctions
Attacks around the Strait of Hormuz have surged over the past 10 days, and two vessels sank near the strait in separate projectile incidents in the past 24 hours, maritime officials said. The US is considering easing sanctions on some so-called shadow-fleet vessels to help lower petroleum shipping costs, a US official said.
3. Supply and inventories
Russia's crude production rose by 65,000 barrels per day in September to 8.43 million bpd, while Middle East Gulf crude exports increased by 4.4 million bpd to around 75% of prewar levels, the International Energy Agency said. US crude inventories fell by 11.1 million barrels in the week ended October 9, market sources said, citing American Petroleum Institute data; official figures from the Energy Information Administration were due later Thursday.
