Oil falls to $104, supply outlook offsets Hormuz fears

Brent crude futures fell 1.67% to $104.36 a barrel on Thursday, according to Mettis Global data, while West Texas Intermediate dropped 0.59% to $93.97 by 10:20 am PST. Traders weighed the risk to supplies from attacks on vessels in the Strait of Hormuz, including a Singapore-registered ship that sank, alongside the International Energy Agency's latest outlook. Singapore's maritime authority denounced the attacks as unwarranted and a breach of global law.

The IEA's October oil market report, published Wednesday, said tight diesel market conditions could last into next year and flagged the risk that new attacks on Saudi Arabia could slow the recovery in global supply. Iran, meanwhile, said it was counting the moments before it could strike US warships, which added to uncertainty over regional security.

Potential supply-boosting steps have offset some of that pressure, as the Trump administration weighs easing sanctions on shadow fleet vessels carrying oil and fuel products from places such as Russia, Reuters reported. Firas Bechwaty, who leads business development for online trading platform ICM, said limited headway in US-Iran talks gave little immediate hope of the Strait fully reopening. Supplies are being supported by ongoing Saudi shipments through other channels and quicker emergency releases from IEA members, which Bechwaty said has softened the impact of supply disruptions.