Saudi Oil Shipments Ease Supply Concerns, Sending Prices Down

Oil prices fell by about 2% on Thursday to a one-week low of $103.13 per barrel, according to Brent crude futures. US West Texas Intermediate futures dropped to their lowest level since September 11 at $100.82 a barrel.

The decline came after reports that Saudi Arabia was offering additional crude cargoes through Oman, easing supply concerns. This move is expected to offset some of the disruption caused by attacks on the East-West pipeline to the Red Sea.

Saudi Arabia's efforts to maintain shipments via Oman and its plan to return about half the capacity of its East-West oil pipeline within days also contributed to the price drop. The pipeline, which supplies crude to Yanbu, was halted last week following drone attacks.

Traders said a prolonged closure of the pipeline could cut off as much as 4% of global oil supply. Despite this, some analysts remain cautious, citing the physical market's tightness and concerns over renewed disruption to Red Sea shipping and regional energy infrastructure.