Oil prices retreat as investors weigh supply outlook and Middle East tensions
USO•Oil prices fell more than 1% on Thursday, with Brent down 1.6% to $104.42 a barrel and U.S. crude down 1% to $94.11. Investors weighed shipping attacks near the Strait of Hormuz against a possible easing of U.S. sanctions on some oil-carrying vessels.
1. Prices pull back
Brent crude futures fell $1.64 to $104.42 a barrel, while U.S. West Texas Intermediate crude futures lost 98 cents to $94.11 by 0337 GMT, reversing gains from the previous session. Attacks on shipping near the Strait of Hormuz have surged over the past 10 days; a container ship and a dry bulk carrier sank after separate projectile strikes in the previous 24 hours, maritime officials said.
2. Supply and inventories
The Trump administration is considering easing sanctions on so-called shadow-fleet vessels to help lower petroleum shipping costs, a U.S. official said. The talks could allow “legal oil” to move on previously sanctioned vessels. Separately, U.S. crude stocks fell by 11.1 million barrels in the week ended October 9, while gasoline inventories rose, market sources said, citing American Petroleum Institute data. Official Energy Information Administration figures were due later Thursday.
