Oman Crude Shipments Ease Oil Price Jitters Amid Saudi Pipeline Disruptions
Oil prices plummeted on Wednesday after Saudi Arabia reportedly offered more crude to Asian refiners through ship-to-ship transfers from Oman's Sohar port, easing concerns about global supply disruptions.
The move came as Saudi Aramco worked to restore capacity at its damaged East-West pipeline, which was hit by Yemen-based Houthi forces last week. The company aims to revive half of the pipeline's 1,200-kilometer route within days, with full repairs expected in six weeks.
According to a Reuters report, Saudi Arabia's offer of crude through Oman helped offset disruptions at its Red Sea port of Yanbu, which was also targeted by Houthi forces. Meanwhile, US crude inventories fell by 600,000 barrels to 423.4 million barrels for the week ending September 11.
Oil prices reacted sharply to the news, with Brent crude futures for November deliveries falling about 3.1% to $105.36 per barrel and West Texas Intermediate (WTI) contracts expiring in October dropping nearly 3.3% to $102.3 per barrel.