Oil Prices Plummet on Saudi Arabia's Oman Shipping Deal

Oil prices declined on Thursday as concerns over supply disruptions in the Middle East eased due to Saudi Arabia's offer to ship extra crude through Oman.

The Brent crude futures contract dropped $1.88, or 1.8%, to $103.95 a barrel by 0632 GMT, while U.S. West Texas Intermediate futures fell $1.77, or 1.7%, to $100.66 a barrel.

Nissan Securities Investment's chief strategist, Hiroyuki Kikukawa, attributed the price drop to Saudi Arabia's decision to ship cargo via Oman, which reduced fears of supply disruptions.

The decline in oil prices was also influenced by expectations of progress toward easing tensions in the Middle East ahead of the U.S.-China summit next week.