Oil prices fell on Thursday as reports that Saudi Arabia was offering additional crude cargoes through Oman helped ease immediate concerns over global supply disruptions. Brent crude futures declined to around $104.59 a barrel, while US West Texas Intermediate (WTI) traded near $101.29 a barrel, extending losses from the previous session.
Saudi Arabia is offering additional crude volumes to Asian refiners through ship-to-ship transfers near Oman’s Sohar port, providing an alternative route after damage to the East-West oil pipeline disrupted supplies to the Red Sea. However, the additional shipments are expected to offset only part of the lost export volumes, keeping supply risks elevated. Market participants are also monitoring the potential repair of the damaged pipeline and developments affecting regional energy transportation.
Meanwhile, US crude inventories fell by around 640,000 barrels last week, below expectations for a decline of approximately 1.62 million barrels. The combination of alternative Saudi export routes and continuing infrastructure and supply risks is keeping the global oil market volatile, with prices remaining above $100 a barrel.
