Brent steady as US weighs easing curbs on global ‘shadow fleet’

Brent crude prices remained stable on Thursday as investors contemplated potential U.S. measures to ease restrictions on the global "shadow fleet" of tankers, amid ongoing Middle East conflicts. The international benchmark closed at $105.92 a barrel, down 14 cents or 0.13 percent. Meanwhile, U.S. West Texas Intermediate crude futures rose by $2.88, or 3.03 percent, to $97.97 a barrel following a significant decline in U.S. crude inventories.

The shadow fleet discussions come in the wake of President Donald Trump's temporary lifting of sanctions on Russian diesel fuel to mitigate a global price surge. The focus of these talks is on the possibility of allowing "legal oil" to flow on previously sanctioned vessels. However, the Department of Energy affirmed that such a move would not enable Russia to export oil or oil products.

U.S. crude and distillate inventories decreased last week, while gasoline inventories rose, according to the Energy Information Administration. Escalating conflict between Saudi Arabia and Yemen's Houthis, along with renewed attacks on ships in the region, contributed to oil risk premiums. Ship attacks, including the sinking of a container ship and a dry bulk carrier near the Strait of Hormuz, further supported prices.

Despite signs that the conflict may be waning, Houthis continued attacks on strategic targets in Yemen, and Ukraine resumed missile strikes on Russian refineries. The International Energy Agency announced plans to release over 20 million barrels of diesel to the market, aiming to alleviate supply constraints and curb rising prices.