Key facts
- Oil prices declined, heading for a weekly loss as Saudi Arabia offered alternate supply routes.
- Brent crude futures were trading at $103.65 per barrel, down 1% for the session.
- West Texas Intermediate futures were trading at $101.04 per barrel, down 1% for the session.
- Saudi Arabia is offering more crude cargoes via ship-to-ship transfers off Oman's Sohar port.
- Concerns about strikes between Saudi Arabia and Yemen's Houthis were outweighed by hopes of alternate ways for Middle Eastern barrels to reach markets.
- A Ukrainian drone attack damaged a refinery in the Russian city of Yaroslavl.
Oil prices declined on Thursday, heading for a weekly loss as Saudi Arabia's efforts to offer alternate supply routes eased concerns over Middle East disruptions. Brent crude futures fell 1% to $103.65 a barrel, and West Texas Intermediate futures dropped 1% to $101.04 a barrel.
Concerns about strikes between Saudi Arabia and Yemen's Iran-backed Houthis were outweighed by hopes of alternate ways for Middle Eastern barrels to reach markets. Saudi Arabia is offering more crude cargoes via ship-to-ship transfers off Oman's Sohar port, downplaying fears of supply disruptions. This comes amid reports of better-than-expected recovery in Gulf infrastructure, with Saudi Arabia claiming it can restore half the capacity of its East-West pipeline within days.
China is reportedly pressing Iran to help rein in the Houthis after a Saudi appeal, according to Reuters citing sources. Chinese officials did not issue explicit threats or indicate economic pressure if Iran failed to use its influence, but the Chinese foreign ministry stated that escalating regional instability is not in the interests of any party and called for resolving issues through dialogue.
Fighting continues in Yemen, with government forces attempting to prevent Houthi advances near Bab al-Mandeb and Taiz, supported by Saudi air strikes. Separately, a Ukrainian drone attack damaged a refinery in the Russian city of Yaroslavl.