Saudi Cargo Offers Ease Crude Oil Price Concerns Amid Global Supply Woes
Crude oil prices declined as reports of additional Saudi crude supplies to Asian refiners eased concerns over Middle East supply disruptions. The Saudi cargo offers were made through ship-to-ship transfers off Oman's Sohar port after drone attacks damaged its oil pipeline to the Red Sea.
The US Energy Information Administration reported a 640,000-barrel decline in US crude inventories to 423.4 million barrels, which was smaller than market expectations for a 1.6 million-barrel draw. However, the American Petroleum Institute data showed that US crude and distillate inventories increased last week.
US domestic crude production increased by around 85,000 barrels per day to a record 13.95 million barrels per day in the week ended September 4. OPEC lowered its 2026 world oil demand growth forecast to 380,000 barrels per day, marking its fifth consecutive downward revision.
The International Energy Agency expects global oil supply and demand to decline further than previously projected due to prolonged Middle East disruptions and shrinking inventory buffers. The IEA warned that stretched global refining capacity and reduced buffers could increase market tightening risks if geopolitical conflicts persist.