Oil Prices Drop Amid Easing Middle East Supply Concerns

Oil prices dropped on Thursday, extending losses from the previous session as concerns over Middle East supply disruptions eased. Brent crude futures fell to $104.74 a barrel, while U.S. West Texas Intermediate crude dropped to $101.60.

The decline came after news that Saudi Arabia would ship cargo via Oman, which alleviated some of the worries about tight supplies. However, prices remained above $100 a barrel due to continued tensions in the region.

Analysts at Saxo Bank noted that recovering oil flows through the Strait of Hormuz were partly compensating for export volumes lost after drone attacks disrupted the Saudi pipeline. Despite this, supply risks remain as regional tensions continue.