LONDON — Oil prices fell on Thursday as the United States considered easing restrictions on certain oil tankers linked to Russia, raising hopes of lower shipping costs and improved flexibility in global fuel supplies. Brent crude futures fell $2.28, or 2.2%, to $103.78 a barrel, while U.S. West Texas Intermediate (WTI) crude declined $1.34, or 1.4%, to $93.75 a barrel, according to Reuters market data reported at 0729 GMT.
The decline followed reports that the U.S. administration was considering relaxing sanctions on some vessels associated with Russia’s so-called “shadow fleet.” These vessels are used to transport oil and petroleum products outside conventional shipping arrangements and are often linked to efforts to evade international restrictions.
A U.S. official said the proposed measures could help reduce freight costs and provide greater flexibility for transporting diesel and other petroleum products. The discussions come days after President Donald Trump temporarily lifted sanctions on Russian diesel fuel in an effort to ease pressure on global fuel prices.
However, geopolitical tensions continued to pose risks to energy supplies. Attacks on commercial vessels near the Strait of Hormuz and escalating conflict involving Iran and Yemen’s Houthi rebels have raised concerns about the security of one of the world’s most important oil-shipping routes. Two commercial vessels reportedly sank near the strategic waterway after being struck by projectiles, according to maritime officials cited in reports.
Meanwhile, Ukraine resumed attacks on Russian energy infrastructure, including a strike on an oil refinery in the Ryazan region, adding another layer of uncertainty to global energy markets. U.S. crude inventories also fell by 11.1 million barrels in the week ending October 9, according to preliminary data from the American Petroleum Institute. Official inventory figures from the U.S. Energy Information Administration were awaited.
The oil market remains caught between expectations of increased supply flexibility and fears of further disruptions caused by geopolitical conflict. Any decision by Washington to ease tanker restrictions could influence shipping costs and fuel availability, although the overall impact will depend on the scope and implementation of the measures.
