Brent steady as US weighs easing curbs on global ‘shadow fleet’

Brent crude was almost unchanged on Thursday, closing 14 cents lower at USD105.92 a barrel, a decline of 0.13 per cent. Business Recorder reported that traders were weighing a possible US move to relax curbs on the shadow fleet of tankers. Fighting in the Middle East continued to add a risk premium to the market.

West Texas Intermediate futures climbed USD2.88, or 3.03 per cent, to USD97.97 a barrel, helped by a sizeable drop in American crude stocks. The Energy Information Administration said inventories fell 8.6 million barrels, to 415.6 million, in the period ending October 9. Analysts polled by Reuters had expected a decline of only 288,000 barrels.

Supply worries also supported prices. Two vessels, a dry bulk carrier and a box ship, went down near the Strait of Hormuz after projectile hits, while Houthi missiles aimed at Aden's presidential compound killed two guards. Ukraine also restarted strikes on Russian refineries, hitting one in Ryazan, and the IEA agreed to release around 20 million barrels of diesel.