Oil prices retreat as investors weigh supply outlook, Middle East tensions

Crude benchmarks dropped over 1% on Thursday, according to The Express Tribune, as traders weighed supply risks from Hormuz shipping attacks against US efforts to reduce freight expenses through sanctions relief on some vessels. Brent futures shed $1.64, a 1.6% decline, landing at $104.42 per barrel, while WTI eased 98 cents, roughly 1%, to $94.11, erasing the previous session's advance.

WTI had hit a three-week peak the session before, after Houthi forces struck Saudi Aramco's headquarters, while Iran said it would use fresh methods against vessels in the strait. Two merchant vessels, a container carrier and a bulk carrier, sank near the waterway in the last 24 hours after projectile hits, maritime officials said Wednesday. Strikes around the waterway have picked up sharply over ten days, which Iran links to Washington's port blockade and to newer sanctions.

Russian crude output rose 65,000 barrels daily in September, reaching 8.43 million, yet still sat 870,000 barrels lower than a year earlier, the International Energy Agency said. Crude shipments from Gulf suppliers climbed 4.4 million barrels per day in September, reaching roughly 75% of prewar levels. US crude inventories shrank 11.1 million barrels over the seven days to October 9, well above analyst forecasts, while gasoline stocks grew. Haitong Futures said prices barely responded to the bullish inventory data, a sign investors are hesitant to buy at current levels.