Manila:Investors saw a drop in oil prices by more than a dollar in early trading today as they evaluated the risks to supply caused by recent attacks on vessels passing through the Middle East and the United States' potential move to reduce oil shipping costs by easing sanctions on tankers.
According to Oman News Agency, Brent crude futures decreased by $1.39, or 1.31 percent, to $104.67 per barrel, while US West Texas Intermediate crude futures fell by $1.02, or 1.07 percent, to $94.07, reversing gains from the previous session.
A US official mentioned that President Donald Trump's administration is contemplating the easing of sanctions on the so-called shadow fleet. This fleet transports oil and petroleum products from nations like Russia, Iran, and Venezuela. The move aims to relieve pressure on prices after the conflict with Iran disrupted navigation and escalated shipping costs to unprecedented levels. The discussions are reportedly centered on permitting "legitimate oil" transport on previously sanctioned vessels, with increased production from Russia and the Middle East helping to stabilize prices.
The International Energy Agency reported that Russia's crude output increased by 65,000 barrels per day in September, reaching 8.43 million barrels per day, though it remained 870,000 barrels per day below the levels from the same period last year. Additionally, oil exports from Gulf states rose by 4.4 million barrels per day in September, reaching about 75 percent of pre-war levels.
In the US, crude oil and distillate inventories fell, while gasoline stockpiles increased last week, according to market sources referencing American Petroleum Institute data. These sources noted a decline of 11.1 million barrels in crude inventories for the week ending October 9. Official data from the US Energy Information Administration is expected at 1600 GMT, following a delay due to the Columbus Day holiday.
