Oil prices fell more than $1 in early trade, with Brent at $104.67 a barrel and WTI at $94.07. Investors weighed attacks on shipping and a possible easing of US sanctions on some vessels against rising output and a sharp draw in US crude stocks.
Brent crude futures fell $1.39, or 1.31%, to $104.67 a barrel, while US West Texas Intermediate crude futures dropped $1.02, or 1.07%, to $94.07 by 0116 GMT on Thursday. Both benchmarks reversed gains from the previous session, when WTI reached a three-week high.
A container ship and a dry bulk carrier sank near the Strait of Hormuz in separate projectile attacks in the past 24 hours, maritime officials said. Attacks around the waterway have surged over the past 10 days. The US is considering easing sanctions on so-called shadow fleet vessels to help ease petroleum shipping costs, a US official said.
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 stocks fell by 11.1 million barrels in the week ended October 9, according to market sources citing industry data; official US figures were due later Thursday.
