Reuters_ Oil prices slid slightly on Friday morning as investors weighed risks in the Middle East alongside potential U.S. measures to ease restrictions imposed on "shadow fleet" tankers globally.
By 00:12 GMT, Brent crude futures fell 41 cents, or 0.39 percent, to $105.51 a barrel, while U.S. West Texas Intermediate (WTI) crude futures dropped 54 cents, or 0.55 percent, to $97.43.
U.S. crude settled over three percent higher in the previous session after a large draw from U.S. crude oil inventories helped support prices, while Brent crude was largely unchanged.
The International Energy Agency agreed on Thursday to release more than 20 million barrels of diesel into the market, in addition to any remaining emergency reserves agreed to be drawn down in March, in an effort to boost supply and curb soaring prices.
Haitong Futures noted in a report on Friday that during the previous trading session, oil prices rose overnight, signaling that "investors are unsatisfied with these measures."
It added that "what will truly calm the oil market is an easing of tensions in the Middle East."
A U.S. official stated on Wednesday that President Donald Trump's administration is considering lifting sanctions on certain vessels within the so-called "shadow fleet" that transport oil and petroleum products from countries including Russia, Iran, and Venezuela, in an attempt to lower global freight rates that have hit all-time highs.
These discussions come days after Trump's decision to temporarily lift sanctions on Russian diesel fuel, a move met with a barrage of criticism from Ukrainian President Volodymyr Zelenskyy, European nations, and members of the Republican party in the U.S. Senate.
Meanwhile, prices drew support from the escalating conflict between Saudi Arabia and the Houthis in Yemen, as well as renewed attacks on shipping in the region.
The pace of attacks in the Strait of Hormuz has intensified over the past ten days, with Iran announcing an escalation of strikes in response to the U.S. blockade of its ports and stricter sanctions imposed last month.
The Houthis launched missiles at the Presidential Palace complex in the southern city of Aden on Thursday, killing five people, while the Saudi-led coalition in Yemen disclosed details of dozens of attacks on infrastructure within the Kingdom.
