Oil prices slip as US weighs easing sanctions on 'shadow fleet'
USO•Brent fell 1.1% to $104.91 a barrel as the US considered easing sanctions on some Russian tankers, while WTI rose 0.3% to $95.40. Shipping attacks and Ukrainian strikes on Russian energy infrastructure limited the decline.
1. Brent prices fall
Brent crude fell $1.15, or 1.1%, to $104.91 a barrel by 1157 GMT. US West Texas Intermediate crude futures rose 31 cents, or 0.3%, to $95.40, amid expectations for a large draw in weekly inventories.
2. Sanctions and shipping
Prices fell after a US official said the administration was considering easing sanctions on some Russian “shadow fleet” tankers. The discussions centre on potentially allowing “legal oil” to flow on previously sanctioned vessels, which could lower freight rates and increase flexibility in diesel shipments. Attacks on ships near the Strait of Hormuz and Ukrainian strikes on Russian energy infrastructure limited the decline.
3. Stocks and supply
Spain plans to release 4.4 million barrels from strategic reserves in October, while the International Energy Agency began a meeting expected to clarify details of a 100 million-barrel oil stock release. US crude stocks fell by 11.1 million barrels in the week ended October 9, according to market sources citing American Petroleum Institute data; official US inventory figures were due later Thursday.
