Brent steady as US weighs easing sanctions on global 'shadow fleet'
[HOUSTON] Brent was little changed on Thursday (Oct 15) as investors weighed possible US steps to ease restrictions on the world’s “shadow...
Brent crude prices hovered near unchanged on Thursday (Oct 15) as investors contemplated potential easing of US sanctions on the world's "shadow fleet" of tankers, amid ongoing Middle East conflict fueling geopolitical risk in the market. The international benchmark edged down 14 US cents, or 0.1%, to US$105.92 a barrel. Meanwhile, US West Texas Intermediate crude futures rose 3% to US$97.97 a barrel following a substantial U.S. crude stock draw that bolstered prices.
Discussions around the shadow fleet took place just days after President Donald Trump temporarily lifted sanctions on Russian diesel fuel to curb a global price surge. The proposed allowance involves permitting "legal oil" to flow through previously sanctioned vessels, according to a U.S. official. The Department of Energy clarified that easing sanctions on the shadow fleet would not facilitate Russia's oil exports.
Meanwhile, US crude inventories and distillate inventories declined last week, whereas gasoline inventories increased, according to the Energy Information Administration. Escalating hostilities between Saudi Arabia and Yemen's Houthis, along with renewed attacks on ships in the region, supported oil prices. Sinking of a container ship and a dry bulk carrier near the Strait of Hormuz added to market concerns.
The ongoing conflict is keeping a premium in oil markets, though energy infrastructure has not been targeted recently, according to MUFG analysts.
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