Key facts
- Brent crude futures fell 1.8% to $103.95 a barrel.
- U.S. West Texas Intermediate futures were down 1.7% at $100.66 a barrel.
- Saudi Arabia is offering more crude oil loadings to Asian refiners via ship-to-ship transfers off Oman's Sohar port.
- Two pumping stations serving the East-West pipeline were damaged in an attack last week, with a repair timeline unclear.
- U.S. crude oil stocks fell about 640,000 barrels last week, compared to expectations of a 1.62 million-barrel draw.
Crude oil prices extended their losses on Thursday, following reports that Saudi Arabia will be exporting more oil through Oman while the East-West pipeline is repaired. Brent crude futures dropped 1.8% to $103.95 a barrel, and U.S. West Texas Intermediate futures were down 1.7% at $100.66 a barrel. Both contracts had fallen about $3 on Wednesday.
The easing of fears about Middle East supply disruption came as Saudi Arabia offered more crude cargoes via ship-to-ship transfers off Oman's Sohar port, a move that calmed traders. This rerouting aims to bypass potential disruptions in the Strait of Hormuz, which has seen recent attacks. The East-West pipeline, crucial for sending crude to the Red Sea port of Yanbu, was also damaged last week, with its repair timeline unclear.
Concerns about supply tightness eased slightly following the news of Saudi shipments via Oman, according to Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment. Expectations of progress toward easing Middle East tensions ahead of a U.S.-China summit also capped price gains.
Adding to the downward pressure, the U.S. Energy Information Administration reported a smaller-than-expected draw from U.S. crude inventories last week. Crude oil stocks in the top-producing nation fell about 640,000 barrels, compared to analyst expectations of a 1.62 million-barrel draw.