Oil prices fell on Thursday as fears of supply disruptions eased
Saudi Arabia has suspended loadings at Yanbu but is offering more crude oil via Oman. Oil prices declined on Thursday as news that Saudi Arabia would ship additional crude oil through Oman alleviated concerns about supply disruptions.
The price per barrel of both Brent and WTI crude fell by more than $1. Brent crude futures dropped $1.88, or 1.8%, to $103.95 per barrel at 09:32 Turkish time (06:32 GMT), while WTI crude futures fell $1.77, or 1.7%, to $100.66 per barrel.
Both contracts had lost approximately $3 in value on Wednesday.
While concerns regarding supply tightness have eased somewhat following news of the shipments via Oman, expectations of a de-escalation of tensions in the Middle East ahead of a US-China summit next week are also limiting price increases.
Saudi Arabia is offering to load more crude oil for Asian refiners via ship-to-ship transfers off the coast of Oman's Sohar Port; this move partially mitigates the impact on global supply caused by attacks on the Kingdom's East-West pipeline, which runs to the Red Sea.
However, some analysts predict that these shipments will offset only a portion of the supply lost from the Kingdom's Red Sea port, thereby limiting the decline in oil prices.
Oil prices had surged to their highest levels in nearly four months earlier this week after Saudi Arabia suspended crude oil loadings at Yanbu, its export hub on the Red Sea, and notified European customers of the cancellation of certain cargo deliveries.
The decision to suspend operations followed attacks on the East-West pipeline that supplies Saudi Arabia's Yanbu Port. Yanbu had become the primary outlet for Saudi oil exports after Iran began blockading the Strait of Hormuz following attacks on the country by the US and Israel in late February.
Despite a drop in oil prices on Thursday, concerns regarding the unpredictable conflict in the Middle East persist.
Following a sudden advance that expanded Tehran's sphere of influence in the Middle East conflict, the Iran-backed Houthis stated on Wednesday that Saudi warplanes had struck Yemen, while they had launched drones and missiles at Saudi cities.
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