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

Oil prices fell more than 1 per cent on Thursday, according to Business Recorder, as traders weighed supply risks from attacks on shipping in the Strait of Hormuz against US moves to ease sanctions on certain vessels. By 0337 GMT, Brent futures had lost $1.64 to trade at $104.42 a barrel. West Texas Intermediate was 98 cents weaker at $94.11, undoing the previous session's rise.

West Texas Intermediate had reached a three-week high in the previous session after a Houthi assault on Saudi Aramco's headquarters, and Iran said it would use new tactics against ships in the strait. Two vessels, a container carrier and a dry bulk ship, sank close to the waterway within a day of being struck by projectiles, maritime officials said Wednesday. Strikes in the area have picked up over the last 10 days, with Iran describing the escalation as a reaction to Washington's port blockade and sanctions introduced last month.

The International Energy Agency said Russian crude output reached 8.43 million bpd in September, up 65,000 bpd in the month but still 870,000 bpd below a year earlier. Shipments from Gulf producers climbed 4.4 million bpd last month, reaching about 75% of prewar levels. For the week to October 9, American Petroleum Institute figures showed US crude stocks shrinking by 11.1 million barrels, a bigger draw than analysts polled by Reuters had anticipated.