Oil Prices Slide as US Eyes Sanctions Relief for Russia’s Shadow Fleet

TLDR

• Brent crude fell 2.2% to $103.78 a barrel and WTI dropped 1.4% to $93.75 on Thursday.
• A US official said the administration is considering easing sanctions on some Russian “shadow fleet” tankers.
• Ship attacks near the Strait of Hormuz and Ukrainian strikes on Russian refineries limited the decline.
• API data showed US crude stocks fell 11.1 million barrels, a bigger draw than analysts expected.
• Official US inventory data is due at 12 p.m. EDT on Thursday.

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Oil prices fell about 2% on Thursday after the US said it is weighing easier sanctions on some Russian tankers. Attacks on ships in the Middle East and strikes on Russian energy sites limited the drop.

Brent crude futures fell $2.28, or 2.2%, to $103.78 a barrel by 0729 GMT. US West Texas Intermediate futures dropped $1.34, or 1.4%, to $93.75.

The losses reversed gains from the previous session. On Wednesday, WTI rose 1% to near $95, and Brent settled around $106.

US Weighs Easing Sanctions on Russian Tankers

A US official said on Wednesday that the administration is considering easing sanctions on some of Russia’s unregulated “shadow fleet” tankers. The talks focus on letting “legal oil” move on vessels that were sanctioned before.

BREAKING: Trump administration plans to ease sanctions on shadow fleet oil tankers that have carried oil and petroleum products from Russia, Iran and Venezuela, in an effort to reduce record-high global freight rates, per Reuters.

The US already lifted sanctions on Russian…

— The Hormuz Letter (@HormuzLetter) October 15, 2026

PVM Oil analyst John Evans said the move could help lower freight rates. It could also give diesel shipments more flexibility.

The talks come days after President Donald Trump temporarily lifted sanctions on Russian diesel fuel. That step was meant to ease a surge in prices around the world.

Attacks Keep Supply Risks in Focus

Prices still found support from the conflict between Saudi Arabia and Yemen’s Houthis. Attacks on ships in the region have also returned.

A container ship and a dry bulk carrier sank near the strait in the past 24 hours, maritime officials said. Both were hit by projectiles in separate incidents.

Attacks around the waterway have surged over the past 10 days. Iran said it is stepping up strikes in response to the US blockade of its ports and tougher sanctions introduced last month.

MUFG analysts said the Saudi-Houthi conflict is keeping a geopolitical premium in oil markets. They added that energy infrastructure has not been attacked in the last several days.

Ukraine resumed attacks on Russian refineries with a strike on a plant in the Ryazan region. This came after Ukrainian President Volodymyr Zelenskiy voiced anger at a “dangerous” withdrawal of US intelligence.

Russia also accused Ukraine of hitting two oil refineries on Wednesday, despite an “energy ceasefire” promoted by Trump. Kyiv denied the claim, and Bloomberg could not verify it.

Brent has risen more than 70% this year as the US-Iran war affects energy markets. The International Energy Agency said global observed inventories are 509 million barrels below pre-conflict levels.

The agency also said on-land stockpiles are near their lowest in at least a decade. It warned that supplies of diesel and other fuels will stay under pressure next year.

The American Petroleum Institute reported that US crude inventories fell 11.1 million barrels in the week ended October 9, market sources said. Gasoline stocks rose, and distillate inventories fell. If confirmed, it would be the biggest crude drop since June 2025.

Official US Energy Information Administration data is due at 12 p.m. EDT (1600 GMT) on Thursday. It was delayed by a day after the Columbus Day holiday on Monday.