Saudi Arabia's Oman Route Eases Oil Price Fears

Oil prices retreated on Thursday in Asian trade, easing losses after reports that Saudi Arabia would offer extra crude cargoes through Oman, reducing fears of supply disruptions.

The Brent crude futures dropped 19 cents, or 0.2%, to $105.64 a barrel by 0347 GMT, while U.S. West Texas Intermediate futures were down 33 cents, or 0.3%, at $102.10.

According to Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, concerns over supply tightness eased slightly following news that Saudi Arabia would ship cargo via Oman.

However, some analysts expect these flows to only ease a portion of the supply loss from the kingdom's Red Sea port, capping the declines in oil prices.