Oil Prices Fall on Saudi Export Workaround, But Geopolitical Risks Persist
The price of oil extended its pullback on Thursday as Saudi Arabia's export workaround eased supply fears. WTI crude traded at around $101.34 per barrel, down $1.09 or 1.06% from Wednesday's settlement. Brent crude also fell, reaching approximately $104.33 per barrel.
The decrease in oil prices is attributed to Saudi Arabia's ability to transport crude through Oman and the prospect of a faster repair of its East-West Pipeline. This reduced concerns about a prolonged pipeline outage that could have removed up to 4% of global oil supply.
However, Brent remains above $100 due to ongoing risks in the Middle East, including the Strait of Hormuz conflict and Saudi infrastructure damage. Additionally, diesel markets are extremely tight, with European gasoil and U.S. ultra-low-sulfur diesel futures reaching record highs.