Brent, WTI slide as IEA says Gulf crude shipments exceed 75% of prewar levels

Two UAE cargo ships sink near Hormuz; U.K. reports two more ships struck

Oil futures declined Thursday as traders weighed signs of recovering Middle East crude supplies and a weaker demand outlook against persistent shipping risks around the Strait of Hormuz, reversing gains from the previous session, the Wall Street Journal reported.

December Brent crude futures fell 1.6% to $104.39 a barrel, while December West Texas Intermediate futures dropped 1.1% to $92.91 a barrel, according to the Journal.

The International Energy Agency said Wednesday that Gulf crude shipments rose by 4.4 million barrels a day in September to 13.9 million barrels a day — more than 75% of prewar levels. Global oil supply climbed by 2.5 million barrels a day to 102.3 million barrels a day, with Gulf producers driving the increase, the agency reported.

The IEA warned that the recovery remains vulnerable to renewed attacks on energy infrastructure and shipping.

Shipping risks in the strait remained elevated after two Emirati cargo ships sank near the waterway following attacks, the Journal reported Wednesday. Maritime-security firms confirmed the losses, marking the first such incidents in months.

Separately, the U.K. Maritime Trade Operations issued warnings Wednesday about two container ships struck by unidentified projectiles while crossing the Strait of Hormuz.

Bank MUFG said attacks on Saudi energy facilities and vessels around the strait have kept the geopolitical risk premium elevated, even as Middle Eastern crude continues to reach international markets at higher freight costs.

Investors were awaiting weekly U.S. oil-inventory figures from the Energy Information Administration, scheduled for release later Thursday after a one-day delay because of Monday’s federal holiday.

The competing signals — recovering Gulf crude flows offset by persistent shipping risks and elevated freight costs — left oil futures lower as the market weighed improving supply against the IEA’s warning that the recovery remains vulnerable to renewed attacks on energy infrastructure and shipping.