Saudi Arabia Eases Middle East Supply Jitters With Oman Oil Redirect

Oil prices declined on Wednesday after reports emerged that Saudi Arabia is offering additional crude loadings to Asian refiners through ship-to-ship transfers off Oman's Sohar port.

The move comes after drone attacks damaged a major pipeline running to the Red Sea, sparking concerns about supply disruptions in the Middle East.

Brent crude futures traded at $107.92 and U.S. WTI at $104.42 a barrel as prices fell by 83 cents and $1.41 respectively.

Despite the decline, analysts at Macquarie noted that flows of crude, condensate, and refined products through the Strait of Hormuz have held up despite heightened conflict in the area.