Saudi-Led Maritime Coalition Plan Weighs on Oil Prices

Oil prices declined on Thursday after a volatile session as traders digested plans for a Saudi-led maritime coalition to boost defense cooperation in the Red Sea.

The Saudi Defense Ministry announced that 14 countries, including Turkey and Pakistan, have issued a joint statement supporting the proposed multinational coalition.

Brent futures settled at $89.03 a barrel, down $1.71 or 1.88%, while US West Texas Intermediate crude futures settled at $83.59, down 87 cents or 1.03%.

The coalition aims to boost defense cooperation in the Bab El-Mandeb Strait, the Red Sea, and the Gulf of Aden, following Iran-aligned Houthi militants' declaration of a naval blockade on Saudi Arabia last week.

John Kilduff, partner at Again Capital, stated that there is a sense that a lot of supply is waiting to hit the market once the situation is resolved, which is weighing against any dramatic price rise.