Oil prices decline amid supply risks and sanctions assessments
Despite regional conflicts and attacks, the US administration's consideration of easing sanctions played a role in the drop in oil prices.
Although ship attacks around the Strait of Hormuz increased supply risks, oil prices declined as the US considered easing sanctions on certain vessels. Brent crude fell to $104.67 and WTI dropped to $94.07.
Rising Risks in the Strait of Hormuz
While attacks on ships around the Strait of Hormuz continue to escalate supply risks, disruptions are occurring in maritime transport.
In separate incidents near the strait on Wednesday, a container ship and a dry cargo vessel were hit by ammunition and sank.
Easing of Sanctions
The US administration is discussing easing sanctions on shadow fleet vessels in order to lower oil prices and transportation costs.
The discussions focus on the option of allowing previously sanctioned vessels to legally transport oil.
Production and Inventory Data
According to International Energy Agency data, Russia's crude oil production recorded a daily increase in September but remained behind last year.
Meanwhile, according to American Petroleum Institute data, a significant drop in US crude oil inventories was recorded last week.