Oil Prices Plummet on Eased Supply Concerns

Oil prices dropped by around 2% on Thursday to a one-week low as concerns over Middle East supply disruptions eased, according to reports. Brent crude futures fell $2.67, or 2.5%, to $103.13 a barrel at 12:03 p.m. ET (1603 GMT), while US West Texas Intermediate futures dropped $1.61, or 1.6%, to $100.82 a barrel.

The decline in prices came after the US Energy Secretary Chris Wright signaled that Saudi Arabia's East-West pipeline could return to service within days, and reports emerged of additional crude cargoes being shipped through Oman to offset disruptions caused by attacks on the East-West pipeline.

Saudi Arabia has been working to maintain shipments via ship-to-ship transfers off Oman's Sohar port, and is also seeking to restore about half the capacity of its East-West oil pipeline within days. The East-West pipeline supplies Yanbu, where crude loadings had been suspended due to the attacks.

Traders said a prolonged closure of the pipeline could cut off as much as 4% of global oil supply, but Wright told CNBC on Tuesday that crude should be flowing through the pipeline within days.