Oil Slips as Traders Weigh Hormuz Risks and Sanctions Relief
Brent and WTI fell as investors balanced shipping threats around the Strait of Hormuz against possible U.S. sanctions relief for oil tankers.
Key takeaways
- Brent fell 1.7% and WTI dropped 1.1% by 0625 GMT on Thursday.
- The Trump administration is considering easing sanctions on some shadow-fleet vessels.
- U.S. crude inventories fell 11.1 million barrels in the week ended October 9.
Brent crude fell 1.7% to $104.30 a barrel and U.S. WTI dropped 1.1% to $94.03 by 0625 GMT on Thursday, reversing gains from the previous session. The declines came as traders weighed risks to oil shipments against possible U.S. sanctions relief.
Attacks on ships near the Strait of Hormuz have increased over the past 10 days, and two vessels sank near the strait in separate incidents, maritime officials said. The Trump administration is considering easing sanctions on some shadow-fleet vessels to reduce shipping costs, according to a U.S. official.
The International Energy Agency reported that Middle East Gulf crude exports rose by 4.4 million barrels per day in September, reaching about 75% of prewar levels. U.S. crude inventories fell by 11.1 million barrels in the week ended October 9, according to sources citing American Petroleum Institute data.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
