Oil prices fall below $104 on supply outlook
- Brent crude futures fell 1.8% to $103.95 a barrel as Saudi Arabia offered additional crude cargoes through Oman.
- U.S. West Texas Intermediate futures declined 1.7% to $100.66 a barrel, extending losses from the previous session.
- Oil prices remained above $100 as investors monitored risks from the expanding Middle East conflict.
Brent crude futures declined 1.8% to $103.95 a barrel and U.S. West Texas Intermediate (WTI) futures fell 1.7% to $100.66 a barrel after reports that Saudi Arabia was offering additional crude cargoes through Oman, easing some supply concerns.
The decline followed a roughly $3 drop in both contracts on Wednesday, while oil prices had earlier reached four-month highs after disruptions affected Saudi Arabia’s Red Sea export operations.
“Concerns over supply tightness eased slightly following news that Saudi Arabia would ship cargo via Oman,” said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment.
Saudi Arabia offered additional crude loadings to Asian refiners through ship-to-ship transfers near Oman’s Sohar port, while analysts said the flows would only partially offset lost exports linked to damage affecting the kingdom’s East-West pipeline.
Following the announcement, oil prices were down, with Brent crude futures trading at $103.95 per barrel and WTI futures at $100.66 per barrel.
The oil market has been closely monitoring Middle East supply risks after attacks damaged two pumping stations on Saudi Arabia’s East-West pipeline, which supplies crude to the Red Sea export hub of Yanbu.
The decline in oil prices came as traders continued to assess potential supply disruptions, with ongoing military activity involving Saudi Arabia and Iran-backed Houthi fighters adding uncertainty to regional energy flows.
