Saudi Arabia's Oil Shipments Ease Supply Concerns Amid Ongoing Regional Tensions
Oil prices declined further on Thursday in early Asian trading, extending losses from the previous session as reports of additional Saudi Arabian crude supplies through Oman eased concerns about disruptions to global energy markets.
Brent crude futures fell $1.24, or 1.2%, to $104.59 a barrel by 0049 GMT, while U.S. West Texas Intermediate (WTI) futures declined $1.14, or 1.1%, to $101.29 a barrel.
The market sentiment improved after reports that Saudi Arabia was arranging additional crude shipments to Asian refiners through ship-to-ship transfers off Oman's Sohar port, partially offsetting supply losses linked to recent attacks on the kingdom's East-West pipeline.
According to Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, concerns over tighter supplies had eased somewhat following reports of Saudi crude shipments through Oman. He also said expectations of progress in reducing tensions in the Middle East ahead of a U.S.-China summit scheduled for next week were limiting upward pressure on prices.