Crude Oil Hovers at $95

Crude oil fluctuated around $95 a barrel on Thursday as traders weighed mounting shipping risks in the Strait of Hormuz against concerns over weakening global demand. The sinking of a Singapore-registered vessel in the strategic waterway and continued Iranian threats against US warships heightened fears of a prolonged regional conflict. Meanwhile, Houthi missile and drone attacks on Saudi Arabia raised further concerns about potential disruptions to exports, with some tankers reportedly avoiding their usual loading areas. The IEA warned that diesel market tightness could persist into next year, while forecasting global oil consumption would contract by 2.6 million barrels per day in 2026. It also noted that land-based inventories had fallen close to their lowest levels in at least a decade. The latest industry data showed US crude stocks declined by 11.1 million barrels last week.

Crude oil fell below $94 per barrel on Thursday, likely reflecting a technical correction and profit-taking following five consecutive sessions of gains. Investors also assessed reports that the US is considering relaxing sanctions on so-called shadow fleet vessels that have transported oil and petroleum products from countries such as Russia, Iran and Venezuela, as part of efforts to ease record-high global freight rates. However, supply concerns remained elevated after a container ship sank in the Strait of Hormuz on Wednesday following a strike by unidentified projectiles, while Iran-backed Houthi forces continued missile and drone attacks across Saudi Arabia. Russia also accused Ukraine of attacking two oil refineries on Wednesday, including the 400,000-barrel-per-day Ryazan facility, breaching an “energy ceasefire” announced by US President Donald Trump.

Crude oil traded near $95 per barrel on Thursday after rallying for five straight sessions, underpinned by escalating hostilities in the Middle East and Eastern Europe that heightened concerns over supply disruptions. A container ship sank in the Strait of Hormuz on Wednesday after being hit by unidentified projectiles, while Iran-backed Houthi forces continued missile and drone attacks across Saudi Arabia. More oil tankers are steering clear of their usual crude-loading areas, indicating that increased Iranian attacks on shipping are disrupting export operations. Meanwhile, Russia accused Ukraine of striking two oil refineries on Wednesday, including the 400,000-barrel-per-day Ryazan facility, violating an “energy ceasefire” announced by US President Donald Trump. In the US, API data revealed that crude inventories fell by 11.1 million barrels last week, marking the largest decline since June 2025.