Oil Prices Decline as Saudi Arabia Increases Shipments via Oman

Oil prices declined in Asian trade on Thursday, extending losses that began Wednesday. The decline was attributed to reports of Saudi Arabia offering extra crude cargoes through Oman, which eased concerns about supply disruptions.

The Brent crude futures contract fell by 19 cents, or 0.2%, to $105.64 a barrel, while the US West Texas Intermediate futures contract dropped by 33 cents, or 0.3%, to $102.10.

Analysts cited concerns over supply tightness as easing slightly following news of Saudi Arabia's increased shipments via Oman. Expectations of progress toward easing tensions in the Middle East ahead of the upcoming US-China summit next week also capped price gains.

However, some analysts noted that these flows would only partly offset lost export barrels from attacks on the East-West pipeline to the Red Sea. The pick-up in flows through the Strait of Hormuz was seen as blunting some of the hit to global supply.