Oil Prices Tumble as Saudi Supply Disruptions Eased

Oil prices fell for the third consecutive day as market watchers reassessed the impact of Saudi Arabia's East-West pipeline closure. The disruption, which had raised concerns about supply shortages, now appears less severe than initially feared.

According to J.P. Morgan head of global commodities strategy Natasha Kaneva, total oil flows from the Middle East averaged ~17M bbl/day over the past 10 days, nearly 75% of the 2025 average. Satellite imagery suggests the Saudis have moved 2.8M bbl/day through Hormuz over the past six days compared to just 700K bbl/day in August.

While physical premiums for oil in the North Sea soared to record levels, with Norway's Johan Sverdrup trading at a premium of as much as $35/bbl above the Dated Brent physical benchmark, analysts caution that sustaining these volumes could be difficult.