Oil Prices Fall as Market Remains Wary of Risks in the Strait of Hormuz

Oil prices declined during Thursday’s trading session (October 15) as investors weighed the risks of supply disruptions—stemming from an uptick in attacks on vessels in the Strait of Hormuz—against U.S. efforts to lower oil shipping costs. Brent crude was priced at US$104.45 per barrel, while West Texas Intermediate (WTI) stood at US$94.92 per barrel.

WTI had previously reached a three-week high following an attack by the Houthi group on Saudi Aramco’s headquarters, coupled with statements from Iran indicating it would employ new tactics to target vessels in the Strait of Hormuz. Over the last 24 hours, a container ship and a bulk carrier were reported to have sunk in the vicinity of the strait after being struck by projectiles in two separate incidents.

Attacks around the Strait of Hormuz have intensified over the past 10 days. Iran has stated that this escalation is a response to the U.S. blockade of its ports and the tightening of sanctions last month. This situation has heightened risks to a vital energy trade corridor, which serves as a critical route for global oil supplies.

Meanwhile, the administration of U.S. President Donald Trump is considering easing sanctions on vessels used to transport oil and energy products from countries such as Russia, Iran, and Venezuela. This move is intended to help reduce shipping costs and ensure the continued availability of energy supplies in the global market.

Additional supplies from Russia and the Middle East have also helped to cap price increases. Russian crude oil production rose by 65,000 barrels per day in September, reaching 8.43 million barrels per day—though this remains 870,000 barrels per day lower than the previous year’s levels. At the same time, crude oil exports from producing nations in the Persian Gulf region increased by 4.4 million barrels per day in September, reaching approximately 75% of pre-war levels. In the United States, inventories of crude oil and distillate products were reported to have fallen last week, while gasoline stocks increased. U.S. crude oil inventories dropped by 11.1 million barrels during the week ending October 9—a decline significantly larger than what analysts had anticipated. Official data from the Energy Information Administration (EIA) will be closely watched by the market to gain a more comprehensive view of the state of U.S. energy inventories. (asd)

Source: Newsmaker.id