Oil prices slide as US weighs easing sanctions on 'shadow fleet'
USO•Oil prices fell about 2% as the US considered easing sanctions on some Russian tankers, while attacks on ships and Ukrainian strikes on Russian energy infrastructure limited the decline. US crude inventories fell 11.1 million barrels last week, sources said.
1. Prices fall on sanctions talks
Brent crude fell $2.28, or 2.2%, to $103.78 a barrel, while US West Texas Intermediate dropped $1.34, or 1.4%, to $93.75. Prices fell after a US official said the administration was considering easing sanctions on some Russian tankers, which could lower freight rates and increase flexibility in diesel shipments, PVM Oil analyst John Evans said.
2. Conflict supports oil
Attacks on ships near the Strait of Hormuz and Ukrainian strikes on Russian energy infrastructure limited the decline. A container ship and a dry bulk carrier sank near the strait after separate projectile strikes, maritime officials said. Ukraine resumed attacks on Russian refineries, striking a plant in the Ryazan region.
3. US inventory draw
US crude inventories fell by 11.1 million barrels in the week ended October 9, a larger draw than analysts polled by Reuters expected, sources said, citing American Petroleum Institute data. Gasoline stocks rose, while distillate inventories fell. Official figures from the US Energy Information Administration were due later on Thursday.
