Saudi Oil Exports Rerouted Via Oman Amid Middle East Tensions
Oil prices declined for a second consecutive day due to Saudi Arabia's decision to reroute exports via Oman, alleviating supply concerns in the Middle East. Brent futures fell by $1.88, or 1.8%, to $103.95 per barrel at 0632 GMT, while U.S. West Texas Intermediate dropped by $1.77, or 1.7%, to $100.66.
The move was prompted by news that Riyadh is offering additional crude loadings to Asian refiners through ship-to-ship transfers off Oman's Sohar port, which helps mitigate the impact of attacks on the kingdom's East-West pipeline.
However, analysts at Saxo Bank cautioned that the pick-up in flows through the Strait of Hormuz 'is only partly offsetting lost export barrels following drone attacks that shut Saudi Arabia's East-West pipeline,' and the repair timeline for two damaged pumping stations remains unclear.