Oil Prices Ease on Saudi Cargo Relaunch Amid Middle East War Fears

Oil prices have extended their losses in Asian trade on September 19th as fears of Middle East supply disruptions ease. Reports emerged that Saudi Arabia is offering extra crude cargoes through Oman, which has reduced concerns about supply tightness.

This development has led to a slight decline in Brent crude futures, which dropped 19 cents or 0.2% to $105.64 a barrel by 0347 GMT. US West Texas Intermediate futures also fell, down 33 cents or 0.3% at $102.10.

Analysts point out that the pick-up in flows through the Strait of Hormuz is only partly offsetting lost export barrels following drone attacks on Saudi Arabia's East-West pipeline. These attacks had previously led to a suspension of crude loadings at Yanbu, which became Saudi Arabia's main outlet for oil exports after Iran blockaded the Strait of Hormuz.

Despite the easing of supply disruptions, worries about the intensifying Middle East war remain. Saudi warplanes have pounded Yemen, and Houthi fighters launched drones and missiles at Saudi cities in a lightning advance that has extended Tehran's reach in the region.