Brent crude futures fell to $104.42 per barrel
Global oil quotes dropped by more than one percent on the morning of October 15 following previous growth. Markets are reacting to supply risks due to attacks in the Strait of Hormuz and potential U.S. steps to ease sanctions on vessels. This was reported by Ukrinform citing Reuters, according to the portal PromPolitInform.
Futures for Brent benchmark crude recorded a drop of $1.64, or 1.6%, reaching $104.42 per barrel. Meanwhile, American West Texas Intermediate crude lost 98 cents, or 1%, declining to $94.11 per barrel.
Attacks on vessels in the Strait of Hormuz
Previously, quotes showed a three-week high amid news of Houthi attacks on the headquarters of Saudi Aramco and Iran’s statements about a new tactic in the region. Maritime services recorded the sinking of a container ship and a dry cargo vessel as a result of shell hits during the day.
U.S. officials reported considering an initiative to ease restrictive measures against vessels of the so-called shadow fleet carrying shipments from Russia, Iran, and Venezuela. Such a step aims to reduce transportation costs and stabilize freight rates amid the conflict.
Supply dynamics and market inventories
According to data from the International Energy Agency, September crude oil exports from Persian Gulf countries increased by 4.4 million barrels per day. This accounts for approximately 75% of the pre-war figure as resources find alternative logistical routes to buyers.
“Although there is currently no strong evidence that a peace agreement will be reached in the near future, oil continues to flow to buyers through alternative routes and other logistical schemes,” noted Priyanka Sachdeva, head of market analytics at Phillip Nova.
At the same time, the American Petroleum Institute reported a larger-than-expected decline in U.S. crude inventories by 11.1 million barrels for the week. Despite this, the market reaction remained muted due to investor caution regarding further price growth.
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Read also: Middle East War Threatens Biggest Oil Crisis in a Decade — Reuters
