On Thursday, oil prices fell due to traders assessing the potential supply disruptions that could arise after attacks on vessels in the Strait of Hormuz, while also digesting the latest monthly oil market outlook report from the International Energy Agency.
International benchmark Brent crude oil for December delivery fell 1.66% to $104.31 per barrel. US West Texas Intermediate (WTI) crude oil for November delivery fell 1.09% to $94.05 per barrel.
A ship registered in Singapore was sunk in the strategically important Strait of Hormuz, exacerbating international concerns about the potential prolongation of conflicts in the Middle East. The Singapore Maritime Authority stated in a statement on Wednesday: "Such attacks are unprovoked, have no legitimate justification, and violate international law."
At the same time, Iran stated that it is "counting down the seconds" in anticipation of launching attacks on American warships.
In its October oil report released on Wednesday, the International Energy Agency warned that supply restrictions in the diesel market could continue until later next year, and new attacks on Saudi Arabia could undermine the recovery of oil supplies.
Reuters reports that in order to help ease oil prices, the Trump administration is considering relaxing sanctions on so-called "shadow fleet" vessels, which transport oil and petroleum products from countries such as Russia.
Zhou Firas Bechwaty, the head of business development at the online trading platform ICM, stated later on Wednesday that there was no progress in the diplomatic process between the United States and Iran, and "there are almost no signs that the waterways will be fully reopened in the short term."
Bechwaty added, "At the same time, Saudi crude oil continues to reach international buyers through alternative routes, and member countries of the International Energy Agency have accelerated the release of emergency reserves, which has provided an additional buffer. Even though tensions remain high, this has prevented a significant rise in oil prices."
