Saudi Pipeline Repair Eases Supply Concerns, WTI Oil Prices Decline

WTI oil prices declined for the second consecutive day on Thursday, trading around $96.60 per barrel during Asian hours. The price drop was attributed to reports that Saudi Arabia plans to restore roughly half of its East-West pipeline capacity within days and achieve full operation in six weeks.

The pipeline, which provides an alternative export route around the vulnerable Strait of Hormuz, suffered damage during drone attacks last week. Despite this, Saudi Arabia has stepped up efforts to transport larger volumes of crude through Hormuz with assistance from the US military.

US Energy Secretary Chris Wright confirmed that 18 million barrels of crude and petroleum products successfully passed through the Strait of Hormuz earlier in the week. This eased supply concerns, contributing to the downward pressure on prices.

The US Energy Information Administration (EIA) reported a smaller-than-expected draw from domestic crude inventories for the previous week. Crude oil stocks fell by approximately 640,000 barrels, significantly lower than the 1.62 million-barrel draw energy analysts had anticipated.