Saudi Oil Shipments Ease Middle East Supply Concerns

Oil prices declined on Thursday, extending losses from the previous session as reports emerged that Saudi Arabia was offering additional crude shipments through Oman, easing concerns over potential supply disruptions in the Middle East.

Brent crude futures fell $1.24, or 1.2%, to $104.59 a barrel by 0049 GMT, while US West Texas Intermediate (WTI) crude futures dropped $1.14, or 1.1%, to $101.29 a barrel.

The decline in oil prices came after reports that Saudi Arabia would ship crude through Oman, helping ease some pressure on global supplies caused by attacks on the East-West oil pipeline.

Concerns over tight supplies had eased somewhat following the reports, with expectations of progress toward easing tensions in the Middle East ahead of a US-China summit next week also limiting price gains, said Hiroyuki Kikukawa, chief analyst at Nissan Securities Investment.