Saudi Crude Ships Through Oman's Sohar Port Amid Pipeline Crisis

Saudi Arabia has found an unconventional way to export crude oil after pipeline strikes in September. Two very large crude carriers left the Gulf of Oman on Wednesday, carrying around four million barrels of Saudi crude bound for China. The crude was loaded off the coast of Sohar, an Omani port that sits just beyond the eastern mouth of the Strait of Hormuz.

The oil market reacted to this news with a 2.1% drop in Brent crude prices, which settled near $103.61 per barrel on Wednesday. This is a significant decrease from the previous day's price, and it indicates that traders are pricing in the risk of an extended supply emergency.

Ship-to-ship transfers off Sohar have been rising steadily since September, with volumes reaching 2.7 million barrels per day in the month. However, this workaround covers only slightly more than half of what was lost due to the pipeline strikes.