RIYADH: Oil prices fell on Thursday as investors cashed in on a recent rally ahead of the OPEC+ meeting later in the day, with some speculation that Saudi Arabia may boost oil production.
Brent crude was down $2.08, or 1.8 percent, at $114.21 a barrel at 0410 GMT, having risen 0.6 percent the previous day.
US West Texas Intermediate crude dropped $2.25, or 2.0 percent, to $113.01 a barrel, after a 0.5 percent rise on Wednesday.
Oil vessel charter rates gain after Ukraine crisis
Day rates for vessels that move oil and refined products between US ports rose after the US banned Russian oil and product imports this year, Kinder Morgan Inc. CEO Steven Kean said on Wednesday.
Pipeline and terminal operator Kinder Morgan, which owns about 16 Jones Act vessels, saw a “meaningful” uptick in demand spurred by the US ban following Russia’s invasion of Ukraine, Kean said at the Bernstein Annual Strategic Decisions Conference.
The Jones Act requires goods moved between US ports to be carried by ships built domestically and staffed by US crews. Kinder Morgan vessels carry crude oil, refined products and fuel blend stocks to the Mid-Atlantic and Northeast ports.
Daily chartering rates were moving toward the bottom end of pre-pandemic rates of $60,000 to $65,000, Kean added.
The US imported 672,000 barrels per day of Russian crude and refined products last year, according to Energy Information Agency data. Of that, 30 percent, or 199,000 bpd, was crude, while 473,000 bpd was refined products.
(With input from Reuters)
