Oil Prices Continue to Fall as Fears of Middle East Supply Disruptions Ease
Global oil prices dropped following reports of additional Saudi shipments via Oman, easing fears of supply disruptions in the Middle East and the impact of geopolitical tensions.
Translated by Qiyas from السياسة — Original source
Oil prices fell at the start of Thursday’s trading, continuing their decline from the previous session, after reports indicated that Saudi Arabia was offering additional crude oil shipments via the Sultanate of Oman, easing concerns about supply disruptions in the Middle East.
By 00:49 GMT, Brent crude futures dropped $1.24, or 1.2%, to $104.59 per barrel, while U.S. West Texas Intermediate (WTI) crude futures fell $1.14, or 1.1%, to $101.29 per barrel. Both contracts had declined by approximately $3 on Wednesday.
Hiroyuki Kikukawa, chief analyst at Nisay Securities Investment, said concerns about tight supplies eased slightly following news that Saudi Arabia would export shipments via Oman.
He added that expectations of progress toward easing tensions in the Middle East ahead of the U.S.-China summit next week also capped price gains.
Sources familiar with the matter said Saudi Arabia was offering additional crude shipments to be sent to Asian refineries through ship-to-ship transfers off the port of Sohar in Oman, alleviating some of the pressure on global supplies caused by attacks on Saudi Arabia’s East-West oil pipeline.
Oil prices had risen to their highest levels in about four months earlier in the week, after shipping sector sources reported the suspension of crude oil shipments from Saudi Arabia’s Yanbu port on the Red Sea and Riyadh’s cancellation of some delivery shipments to European customers, following attacks on the pipeline supplying oil to Yanbu.
