Middle East Supply Fears Ease Amid Renewed Diplomatic Efforts
Oil prices have remained subdued for three consecutive days, trading around $96.40 per barrel during Asian hours on Friday. The decline in crude oil prices is attributed to easing concerns over Middle East supply disruptions.
Bolstered by growing hopes for renewed diplomatic efforts to resolve the conflict and restore stable energy flows, Saudi Arabia is actively working to restore its energy infrastructure. The kingdom is targeting the recovery of roughly half the capacity of its East-West pipeline within days, with a full return to operations anticipated within six weeks.
To maintain supply in the interim, Saudi Arabia is rerouting a portion of its crude exports through the Strait of Hormuz. By utilizing shuttle vessels to transport crude through the strait before loading tankers waiting outside, Saudi Arabia is effectively limiting its fleet's exposure to potential Iranian attacks.