Brent crude oil price fell by 1.6% to $104.42 per barrel. Meanwhile, the price of West Texas Intermediate (WTI) crude oil in the U.S. also decreased by 98 cents, reaching $94.11 per barrel. This price drop has reversed part of the gains from previous trading sessions.
Factors Influencing Oil Prices
The price of U.S. oil had reached its highest level in three weeks on Wednesday following attacks on Saudi Aramco's facilities and security incidents involving ships in the Strait of Hormuz. Maritime officials reported that in the past 24 hours, a container ship and a bulk carrier sank after being hit by projectiles near the strait.
Read more: Increase in oil prices due to new global supply risks
An American official stated that the wartime situation related to Iran has disrupted shipping and caused unprecedented increases in maritime transport costs. The Trump administration is considering easing sanctions against vessels known as the "shadow fleet" that previously transported oil and petroleum products from countries like Russia, Iran, and Venezuela. The aim of this action is to help stabilize prices.
Oil Production and Exports in the Middle East
The International Energy Agency reported that Russia's crude oil production increased by 65,000 barrels in September, reaching 8.43 million barrels per day. However, this figure shows a decrease of 870,000 barrels per day compared to last year. Additionally, crude oil exports from Gulf producers in the Middle East increased by 4.4 million barrels per day in September, reaching about 75% of pre-war levels.
Priyanka Sachdeva, head of market insights at Philip Nova, noted in a client memo that shipping oil through alternative routes and logistical arrangements has helped prevent a more severe supply shock, but comes at a higher cost and exposes global flows to further disruptions.
Market sources also reported that in the United States, crude oil and distillate inventories fell last week, while gasoline inventories increased. Crude oil inventories for the week ending October 9 decreased by 11.1 million barrels, a drop much larger than analysts had predicted.
Official statistics on U.S. oil and fuel reserves will be released by the U.S. Energy Information Administration with a one-day delay due to Columbus Day holidays.
