Saudi Oil Offer Fails to Stem Price Decline Amid Ongoing Middle East Tensions

Oil prices took another hit on September 17 as concerns over supply disruptions in the Middle East continued to simmer. The Brent crude futures price fell $1.25, or 1.22%, to $104.62 a barrel, while U.S. West Texas Intermediate futures declined $1.16, or 1.2%, to $101.20 a barrel.

The decline comes after Saudi Arabia offered additional crude loadings through Oman's Sohar port, easing some of the supply impact from attacks on its East-West pipeline, which runs to the Red Sea.

Despite this development, risks remain for oil prices as Goldman Sachs has outlined a scenario in which they could rise as high as $120 a barrel if attacks on vessels in the Middle East intensify. If exports return to normal, the bank expects oil prices to fall back toward $80 a barrel.

The disruption's duration will be crucial for oil prices, with JPMorgan estimating that every additional month of disruption could add around $7 to $8 a barrel to Brent prices.