The front-month ICE Brent contract has dropped by $1.23/bbl on the day, to trade at $104.10/bbl at 09.00 GMT.

IMAGE: Getty Images

Upward pressure:

Brent crude’s price has felt some upward pressure from a sharp draw in US crude oil inventories.

US crude oil inventories decreased by 11.12 million bbls in the week ending 9 October, according to estimates from the American Petroleum Institute (API).

A draw in US crude stocks typically indicates stronger demand for oil and can support Brent’s price.

Two container ships were struck by unknown projectiles while transiting the Strait of Hormuz, the United Kingdom Maritime Trade Operations (UKMTO) agency reported yesterday. Both vessels reported minor damage and continued their passage.

Iran’s focus is shifting beyond the Strait of Hormuz, with attacks on vessels in the Gulf of Oman and around the port of Fujairah becoming more common, ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

Brent crude’s price has pressure weighing it down after the US signalled it could ease sanctions on shadow fleet vessels.

The Donald Trump-led US administration is considering easing sanctions on vessels that have carried oil from countries including Russia, Iran and Venezuela, in a bid to cut record freight costs, Reuters reported citing a US official.

Recovering supply from the Persian Gulf has also capped Brent’s gains today. Crude oil exports from Gulf producers rose by 4.4 million b/d to 13.90 million b/d in September, more than 75% of pre-war levels, the International Energy Agency (IEA) said in its monthly oil market report yesterday.

The IEA also expects global oil demand to fall by 2.60 million b/d this year, as higher oil prices and a weaker economic outlook weigh on consumption.

By Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online