Brent crude slid 1.30% to $104.70, shedding $1.38, while West Texas Intermediate fell 1.07% to $94.07, a decline of $1.02, in early trade Thursday.
The fall follows a sharp rise the day before, when WTI touched a three‑week high at $95.09. Maritime attacks near the Strait of Hormuz have kept investors wary of supply disruptions.
Two vessels—a container ship and a dry‑bulk carrier—sank within 24 hours of projectile strikes, according to maritime officials. Freight costs have hit record highs, prompting the Trump administration to consider easing sanctions on shadow‑fleet vessels that transport oil from sanctioned countries.
Production data from the International Energy Agency shows Russia’s crude output rose 65,000 barrels per day in September to 8.43 million barrels per day, yet remains 870,000 barrels per day lower than a year earlier. Gulf producers exported a monthly 4.4 million barrels per day in September, about 75% of pre‑war levels.
Oil futures may rebound if tensions ease or if the U.S. lifts sanctions, but the market is watching the upcoming OPEC+ meeting for guidance on supply cuts. Investors will also keep an eye on freight cost trends and the U.S. administration’s stance on maritime sanctions.