Saudi Oil Offer Eases Middle East Supply Concerns

Oil prices declined on Wednesday as Saudi Arabia offered additional crude cargo shipments to Asian buyers through Oman, easing concerns over supply disruptions in the Middle East.

The Brent crude futures price fell by $1.30 or 1.2% to $107.45 a barrel, while US West Texas Intermediate (WTI) crude dropped by $1.96 or 1.85% to $103.87 by 1307 GMT, according to Reuters.

UBS analyst Giovanni Staunovo noted that the development suggested concerns about larger disruptions to Saudi oil exports were easing.

However, shipping through the Strait of Hormuz remained severely reduced with only four vessels passing through the waterway on Tuesday compared to a 10-day average of 18, further highlighting the importance of monitoring its impact on crude and refined-product supplies.