Middle East Oil Exports Rebound, But Prices Remain Elevated
Oil prices declined on Tuesday as investors focused on recovering crude exports from the Middle East and lingering concerns over potential supply disruptions in the region.
The Brent crude futures price dropped $1.96, or 1.86%, to $103.32 a barrel at 1306 GMT, while US West Texas Intermediate crude fell to $90.65, down $1.95, or 2.11%.
Saudi Arabia has resumed oil loadings from its Red Sea port of Yanbu after restarting operations on the East-West Pipeline, improving the outlook for Middle East oil exports.
KCM Trade chief analyst Tim Waterer noted that while a clearer picture is emerging of higher oil export volumes leaving the Gulf, much of this increase still relies on workarounds such as ship-to-ship transfers, which are less efficient and more costly than normal operations.