Saudi Offer Eases Oil Price Pressure

Oil prices declined on Wednesday after reports emerged that Saudi Arabia was offering additional crude cargoes through Oman, easing concerns about Middle East supply disruptions.

The Brent crude futures fell by $2.92, or 2.7%, to settle at $105.83 a barrel, while US West Texas Intermediate futures dropped $3.40, or 3.2%, to close at $102.43.

Saudi Arabia's decision to offer more loadings of crude oil to Asian refiners via ship-to-ship transfers off Oman's Sohar port helped blunt the hit to global supply from attacks on the country's East-West pipeline to the Red Sea.

UBS analyst Giovanni Staunovo said, 'News around Saudi Arabia exporting from the Gulf suggests concerns that the disruption could be larger are easing.'