Oil prices fall as investors weigh supply outlook, Middle East tensions

Oil prices experienced a decline of over $1 in early trade on Thursday, with Brent crude futures falling 1.31% to $104.67 a barrel and US West Texas Intermediate crude futures dropping 1.07% to $94.07. This price drop was triggered by investors' concerns about supply risks stemming from attacks on shipping in the Strait of Hormuz and US efforts to reduce petroleum shipping costs through sanctions easing on certain vessels.

The attacks, including those on a container ship and a dry bulk carrier, have surged over the past 10 days, with Iran reportedly stepping up strikes in response to the US blockade of its ports and new sanctions introduced last month. Despite increased output from Russia and the Middle East, which kept prices relatively stable, investors remain cautious about chasing prices higher at the current levels.

Brief written by urgent.news from Channel News Asia's own syndicated text. Machine-written — may contain errors; check the original before relying on it.