Saudi Crude Cargoes Through Oman Ease Oil Price Fears

Oil prices fell in early trade on Thursday, extending losses from the previous day, as Saudi Arabia's decision to offer extra crude cargoes via Oman reduced fears of supply disruptions. Brent crude futures dropped $1.24, or 1.2%, to $104.59 a barrel, while US West Texas Intermediate futures were down $1.14, or 1.1%, at $101.29.

Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, said concerns over supply tightness eased slightly following the news that Saudi Arabia would ship cargo via Oman. Expectations of progress toward easing tensions in West Asia ahead of the US-China summit next week are also capping price gains, he added.

Saudi Arabia is offering more loadings of crude oil to Asian refiners via ship-to-ship transfers off Oman's Sohar port, people familiar with the matter said. This move blunts some of the hit to global supply from attacks on Saudi Arabia's East-West pipeline to the Red Sea.