Brent fell amid US consideration of easing sanctions on Russia’s "shadow fleet"
Kyiv • UNN
Brent fell by nearly 1% following U.S. signals of a possible easing of sanctions on Russian tankers. WTI rose amid the anticipated decline in inventories.
Brent crude prices fell by approximately 1% on Thursday, October 15. This came as potential U.S. moves to ease restrictions on tankers from Russia's "shadow fleet" "calmed concerns about high prices." UNN reports this, citing Reuters.
Details
The international Brent benchmark fell by $1.03, or 0.97%, to $105.03 per barrel by 13:26 GMT (16:26 Kyiv time).
Futures for U.S. West Texas Intermediate crude rose by $1.04, or 1.09%, to $96.13 per barrel, driven by expectations of a significant reduction in U.S. inventories for the week.
Oil prices fell after a U.S. official said on Wednesday that the U.S. administration was considering easing sanctions on some unregulated Russian tankers, which could help lower freight rates and increase flexibility in diesel fuel supply, said PVM Oil analyst John Evans.
The discussions are taking place several days after U.S. President Donald Trump temporarily lifted sanctions on Russian diesel fuel "to mitigate rising prices worldwide," the publication writes. According to the U.S. official, the new talks are focused on whether Washington could potentially allow the transportation of "legal oil" on vessels that had previously been sanctioned.
However, prices are still supported by the escalation of the conflict between Saudi Arabia and the Yemeni Houthis, as well as by the resumption of attacks on vessels in the region.
A container ship and a bulk carrier sank near the Strait of Hormuz after being hit by projectiles in separate incidents, shipping officials said on Wednesday.
Attacks around the waterway have increased over the past 10 days, and Iran said it was intensifying strikes in response to the U.S. blockade of its ports and tougher sanctions imposed last month.
"The ongoing conflict between Saudi Arabia and the Houthis maintains a geopolitical premium in oil markets, but energy infrastructure has not come under attack in recent days," MUFG analysts said in a note.
At the same time, Ukrainian President Volodymyr Zelenskyy told the FT about the lifting of the ban on strikes against Russian oil refineries.
Release of diesel reserves
Spain will release 4.4 million barrels from its strategic reserves in October, an Energy Ministry representative said on Thursday, as the International Energy Agency began a meeting expected to clarify details of the release of 100 million barrels of oil reserves, including diesel fuel, with a focus on the timing and scale of the move.
U.S. crude oil and distillate inventories fell last week, while gasoline inventories rose, market sources said on Wednesday, citing data from the American Petroleum Institute.
Crude oil inventories fell by 11.1 million barrels in the week ending October 9, the sources said. This was far more than analysts polled by Reuters had expected.