Saudi Crude Heads Through Oman Amid Tensions
Oil prices took a 1.2% hit after Saudi Arabia announced it would transport its crude through Oman, easing concerns over supply disruptions in the Strait of Hormuz.
The decision was made due to US-Iran tensions and an attack on Saudi Arabia's East-West Pipeline, which transports oil to the Yanbu port for export. The pipeline is expected to return to maximum capacity within six weeks but has been a major concern.
Brent Crude Futures fell to $104.59 per barrel, while U.S. West Texas Intermediate Futures dropped 1.1% to $101.29 per barrel. Saudi Arabia is also offering ship-to-ship transfers of crude off the Sohar Port in Oman to secure cargo from potential Houthi attacks.
The move comes as the US and China prepare for a summit, which has also contributed to lower oil prices. The US Energy Secretary stated that 18 million barrels of crude and petroleum products passed through the Strait of Hormuz this week, with some transported via US Navy ship escorts due to the risk of Iranian attacks.