Oil Prices Fall as Saudi Supply Fears Ease
Oil prices extended losses on Thursday as concerns over immediate Middle East supply disruptions eased after Saudi Arabia arranged additional crude shipments through Oman. Despite the decline, both major benchmarks remained above $100 a barrel as markets continued monitoring regional tensions.
Brent and WTI Oil Prices Fall
Brent crude futures fell $1.88, or 1.8%, to $103.95 a barrel, while US West Texas Intermediate crude dropped $1.77, or 1.7%, to $100.66.
Both benchmarks had already declined by around $3 during the previous session.
Oil prices had climbed to roughly four-month highs earlier in the week after crude loadings were suspended at Saudi Arabia’s Yanbu export hub following attacks on the kingdom’s East-West pipeline.
Saudi Arabia Routes More Crude Through Oman
Saudi Arabia has begun offering additional crude cargoes to Asian refiners using ship-to-ship transfers near Oman’s Sohar port.
The alternative route has eased fears that disruption to the East-West pipeline and Yanbu operations could significantly reduce Saudi exports.
However, the additional shipments may only partially compensate for lost Red Sea export capacity if infrastructure disruptions continue.
Middle East Conflict Keeps Oil Above $100
Two pumping stations serving Saudi Arabia’s East-West pipeline were damaged in an attack, while the timeline for full repairs remains uncertain.
Fighting involving Saudi forces and Yemen’s Houthis has also intensified, maintaining concerns about further attacks on regional energy infrastructure.
Oil markets are therefore expected to remain volatile despite the latest decline, particularly if disruptions around the Red Sea or Strait of Hormuz worsen.
