Oil prices faced a decline in trading on Thursday, losing part of yesterday's gains. This drop occurred due to hopes for the resumption of peace talks between Iran and the U.S. and reduced concerns about disruptions in Middle Eastern oil supply following escalated regional conflicts.
Details on Oil Prices
The price of Brent crude futures fell by $1.22, or 1.1%, to $114.10 per barrel. Additionally, West Texas Intermediate crude oil in the U.S. also dropped by $1.33, or 1.3%, to $101.45 per barrel.
Read more: Natural gas futures stabilize at $3
Market Analysis of Oil
Expectations for increased crude oil and diesel production in Russia have also put additional pressure on the market and prices. Analysts at JPMorgan noted in a report published Wednesday evening that confirmed attacks on Russian oil refining infrastructure have ceased. They stated that since the October 15 attack on the Ryazan refinery, no new attacks have been reported.
These analysts added that the halt in attacks on Russian refineries has allowed for increased refining activity in the country, with Russia's oil refining volume rising by 350,000 barrels per day last week, reaching 4 million barrels. However, analysts emphasized that increased refinery activity will not necessarily lead to an increase in the country's oil exports.
Russia's Crude Oil Production Status
According to JPMorgan analysts, increased refinery activity could allow Russia to boost its crude oil production by nearly the same amount and partially compensate for recent production declines. The country's oil production has fallen to 8.4 million barrels per day, the lowest level since 2003.
On the other hand, the U.S. Energy Information Administration announced on Wednesday that energy companies in the country withdrew 1.9 million barrels of crude oil from their reserves in the week ending October 23. This comes as analysts participating in a Reuters survey had predicted that U.S. crude oil inventories would increase by 15,000 barrels during this period.
Read more: Russia expands its energy cooperation with African countries · Weekly tanker rental rate estimates for October 28, 2026
