Oil Prices Plummet 4% Amid Eased Saudi Supply Concerns
Oil prices declined by approximately 4% on Wednesday as concerns over potential disruptions to Saudi Arabian supplies began to ease. The US administration had expressed worries about the impact of damage to the kingdom's East-West pipeline, but Energy Secretary Chris Wright said repairs were expected to be completed within days.
The pipeline carries crude from Saudi Arabia's eastern oil-producing regions to the Red Sea port of Yanbu, allowing shipments to bypass the Strait of Hormuz. While the route remains unavailable, Saudi Arabia has increased crude exports through the strategic waterway with US military assistance.
Oil prices were also affected by US inventory figures, which showed a decline in commercial crude oil inventories of 640,000 barrels to 423.4 million barrels in the week ending September 11.