Saudi Oil Exports Via Oman Ease Global Supply Concerns

Oil prices dropped on Wednesday after Saudi Arabia's offer to increase crude exports via Oman eased concerns about Middle East supply disruptions. This move came as a surprise, given that oil prices had surged by more than $3 in the previous session due to fears of a bigger hit to global supply from attacks on the country's East-West pipeline.

According to people familiar with the matter, Saudi Arabia is offering more loadings of crude oil to Asian refiners via ship-to-ship transfers off Oman's Sohar port. This move blunted some of the impact from the disruption caused by the attack on the East-West pipeline.

The U.S. Energy Information Administration reported a smaller-than-expected draw from U.S. crude inventories last week, which added to the downward pressure on oil prices. Crude oil stocks in the top-producing nation fell about 640,000 barrels last week, compared to expectations of a 1.62 million barrel draw.

Analysts believe that the recent escalation in Middle East tensions is likely to continue supporting crude oil and refined fuel prices before the Strait of Hormuz eventually reopens in the fourth quarter of 2026 with support from regional diplomatic efforts.