Brent crude futures traded down about 1.5 percent to $104.47 a barrel by 09:30 local time, pulling back from the previous day’s close of $106.06 and from an intraday high of $107.15. WTI November futures stood at $94.16 a barrel at the same time.
The decline followed reports that the US administration was considering easing sanctions on so-called shadow fleet tankers, a move framed as aimed at reducing oil transport costs.
Supply signals mixed
Russian Deputy Prime Minister Aleksandr Novak said refinery operations in the country are recovering. “The situation of the refineries is improving. Some of our refineries resumed operations after repairs; today the situation is significantly better than a month or even two weeks ago,” he said.
Novak later reported that two refineries, in Saratov and Ryazan, were targeted by Ukrainian drones. Separately, two container ships were reportedly hit by unidentified munitions in the Strait of Hormuz, one of 50,000 gross tonnes and the other of 19,000 gross tonnes, with light damage and no casualties, according to the United Kingdom Maritime Trade Operations.
Inventories and technical levels
US crude oil inventories fell by 11.1 million barrels last week, according to the American Petroleum Institute. Official government data from the US Energy Information Administration was due later the same day.
Traders were watching $104.71 a barrel as resistance for Brent, with $103.69 marked as support. The market remained focused on the prospect of eased US sanctions on tanker fleets even as supply disruptions in Russia and the Strait of Hormuz added uncertainty.
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