Saudi Arabia's Oil Offer Eases Concerns, But Prices Remain Under Pressure

Oil prices slipped on Wednesday after reports that Saudi Arabia was offering additional crude cargoes through Oman eased concerns about Middle East supply disruptions.

The Brent crude futures fell $2.92, or 2.7 percent, to settle at $105.83 a barrel, while US West Texas Intermediate futures fell $3.40, or 3.2 percent, to close at $102.43.

This development came after Saudi Arabia suspended some cargo deliveries to European customers and Yanbu became the main outlet for oil exports due to Iran's blockade of the Strait of Hormuz.

The smaller-than-expected draw in US crude inventories also added downward pressure, with stocks falling about 640,000 barrels last week compared to expectations of a 1.62 million barrel draw.