Oil Prices Plummet as Middle East Risks Ease

Crude oil prices dropped by two percent on Thursday to their lowest level in one week as concerns over disruptions to crude supplies from the Middle East eased.

Brent crude futures declined by $2.67, or 2.5 percent, to $103.13 a barrel, down from $105 on Wednesday, according to Reuters. US West Texas Intermediate crude fell by $1.61, or 1.6 percent, to $100.82 a barrel.

The decline in oil prices came after reports that Saudi Arabia was offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman's Sohar port. This move is expected to offset some of the disruption caused by attacks on Saudi Arabia's East-West oil pipeline, which transports crude to the Red Sea export hub of Yanbu.

Saudi Arabia is also seeking to restore about half of the pipeline's capacity within days, according to a Bloomberg report cited by Reuters. US Energy Secretary Chris Wright had earlier indicated that the pipeline could return to service within days, helping to ease concerns over a prolonged supply disruption.