Oil prices have decreased for the first time in nearly a week as the US considers intervening in the futures market to address rising costs.
The US has also issued waivers to Indian refiners, allowing them to purchase Russian crude oil, aiming to alleviate supply issues stemming from the ongoing conflict in the Middle East, Reuters reported.
By 04:40 GMT, Brent crude futures had slipped $0.95, or 1.1%, to $84.46 a barrel, while West Texas Intermediate (WTI) was down $1.08, or 1.3%, at $79.93.
Prices have been highly volatile since the US and its ally Israel launched a military campaign against Iran dubbed Operation Epic Fury.
Iranian Supreme Leader, Ayatollah Ali Khamenei, was killed in the operation, after which Tehran carried out retaliatory strikes on several locations across the Middle East.
The escalation disrupted oil flows through the Strait of Hormuz, an artery for roughly 20% of global daily oil supply, forcing some refineries to halt operations and reducing regional output.
Over the past four trading sessions since the conflict began, Brent has risen by more than 16%, and WTI is up by more than 19%.
Meanwhile, a senior White House official said the US Treasury Department is likely to unveil steps to address higher energy costs tied to the conflict.
If pursued, it would be a rare effort by Washington to curb prices via financial markets rather than by adjusting physical oil supply, as officials seek to limit the economic and political fallout from rising fuel prices.
Indian refiners, who previously faced pressure to cease these purchases, have started acquiring millions of barrels of Russian crude.
With crude futures jumping nearly 21% since the onset of Operation Epic Fury, US gasoline prices have seen an increase of $0.27 over the past week. This brought the national average cost per gallon to $3.25, according to US-based travel organisation AAA, which tracks fuel prices.
Earlier this week, it was reported by Reuters that Russia is prepared to redirect oil shipments to India amid disruptions in Middle East supplies.
Approximately 9.5 million barrels of Russian crude are positioned near Indian waters and could arrive within weeks, offering prompt relief for Indian refiners facing limited crude stocks covering only around 25 days of demand.
“Oil prices dip as US weighs futures market intervention” was originally created and published by Offshore Technology, a GlobalData owned brand.
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