Saudi Offer Eases Oil Supply Concerns, Prices Fall
Oil prices fell more than 1% on Thursday after concerns over supply disruptions eased following Saudi Arabia's offer to Asian refineries of additional crude shipments through Oman.
The price drop comes as Brent crude fell by 1.2%, or $1.24, to $104.59 a barrel in early trading, while US West Texas Intermediate (WTI) crude declined 1.1%, or $1.14, to $101.29 a barrel.
Saudi Arabia's move eased concerns over potential supply shortages following an attack on its East-West oil pipeline, which damaged two pumping stations and halted crude loadings at the Yanbu port.
According to Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, 'concerns over supply tightness eased slightly following news that Saudi Arabia would ship cargo via Oman.'