Oil prices declined by around 2% on Thursday 15 October following reports that the US is considering measures to relax restrictions on tankers associated with Russia’s so-called “shadow fleet”.
By 07:29 GMT, Brent crude futures had dropped by $2.28, or 2.2%, to $103.78 a barrel (bbl), reported Reuters.
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Meanwhile, US West Texas Intermediate (WTI) crude futures had fallen by $1.34, or 1.4%, to $93.75/bbl. The fall reversed gains recorded in the previous session.
Talks in Washington are reportedly focused on potentially permitting “legal oil” to be transported using vessels previously subject to sanctions, a US official stated.
This comes just days after US President Donald Trump temporarily lifted sanctions on Russian diesel fuel in an effort to ease a global price surge.
Despite the price drop, oil markets remained supported by ongoing security concerns in key shipping lanes and renewed military activity.
Over the past 24 hours, two vessels, a container ship and a dry bulk carrier, sank near a strategic strait after separate projectile attacks, according to maritime officials.
The region has seen a marked increase in incidents in the past ten days.
Iran has separately announced plans to intensify strikes, citing the US blockade of Iranian ports and the imposition of stricter sanctions last month.
Meanwhile, Ukraine has resumed strikes on Russian energy infrastructure, targeting a refinery in the Ryazan region.
The latest attack followed criticism from Ukrainian President Volodymyr Zelenskiy about a “dangerous” withdrawal of US intelligence.
In the US, market sources referencing American Petroleum Institute data reported a decline in crude oil and distillate inventories last week, with crude stocks down by 11.1 million barrels for the week ending 9 October.
Elsewhere, Saudi Aramco’s headquarters in Dhahran sustained significant fire damage in an attack on Tuesday, according to individuals with direct knowledge of the situation, reported Reuters.
While operations have continued, some staff have been instructed to work remotely.
Sources reported that the fire, which started on the ninth floor, affected several floors, including the offices of CEO Amin Nasser.
Saudi Arabia’s Energy Ministry confirmed a limited fire at the site amid ongoing conflict involving Yemen’s Houthi group.
