Brent crude oil price in the North Sea reached $103.78 per barrel by 7:29 AM on Thursday (October 15), showing a decrease of $2.28 or 2.2% compared to the previous day. Additionally, U.S. WTI crude oil fell by $1.34, or 1.4%, to $93.75 per barrel.
Oil Market Analysts and Influencing Factors on Prices
John Evans, an oil market analyst at PVM, noted that oil prices fell following comments from a U.S. official regarding the potential easing of restrictions on Russia's "shadow fleet" tankers. This move may lead to reduced transportation costs and increased flexibility in moving diesel shipments.
The U.S. official stated that in the latest round of negotiations, there may be permission for the movement of legal oil shipments with tankers that were previously sanctioned. Meanwhile, conflicts between Saudi Arabia and the Houthis in Yemen and disruptions in the Strait of Hormuz continue to impact the oil market.
Impact of Conflicts on Energy Infrastructure
Analysts at MUFG stated in a note that the ongoing conflicts between Saudi Arabia and the Houthis are a geopolitical factor in the oil market, but in recent days, energy infrastructure has been spared from airstrikes. This has led to relative stability in prices.
Additionally, following Ukrainian President Volodymyr Zelensky's dissatisfaction with the cessation of U.S. intelligence cooperation, Kyiv has resumed attacks on Russian refinery facilities, targeting a refinery in the Ryazan region.
Oil Storage Situation in the U.S.
According to data from the American Petroleum Institute (API), U.S. crude oil and petroleum product inventories decreased last week. Market sources reported that crude oil inventories fell by 11.1 million barrels in the week ending October 9 (Friday, October 17), a drop significantly beyond analysts' estimates in a Reuters poll.
The official statistics from the U.S. Energy Information Administration are set to be released today at 4 PM GMT. This release has been delayed by one day due to the Columbus Day holiday (Monday, October 20).
