Brent Crude Price Drops Amid US Sanction Review and Supply Developments
Demand expectations and potential flexibilities in sanction policies in global markets drove energy prices downward.
As the US considers easing tanker sanctions and in line with global demand expectations, the barrel price of Brent crude fell by 1.5% to $104.47.
Easing of Sanctions
The US administration's consideration of easing sanctions on certain tankers to reduce transportation costs created downward pressure on prices.
Current Status of Brent Crude
In international markets, the December futures price of Brent crude traded at $104.47 with a 1.5% decrease compared to the previous close, having finished the previous day at $106.06.
Global Oil Demand
In its September report, the International Energy Agency projected that demand would decrease by 2.5 million barrels per day in the fourth quarter, while estimating the annual average decline at 2.6 million barrels per day.
Refineries in Russia
Russian Deputy Prime Minister Alexander Novak stated that some refineries have resumed operations following repairs, while reporting that two refineries in the Saratov and Ryazan regions were targeted by UAVs.
Attacks in the Strait of Hormuz
United Kingdom Maritime Trade Operations announced that munitions hit two container ships passing through the Strait of Hormuz, causing minor damage with no casualties reported.
US Inventories and Technical Levels
According to American Petroleum Institute data, US crude oil inventories decreased by 11.1 million barrels last week, while markets are monitoring the $104.71 resistance and $103.69 support levels.