Saudi Rerouting Pushes Brent to $104 Amid Pipeline Repair Uncertainty
Saudi Arabia's efforts to reroute oil shipments have pushed Brent crude futures down by 1.6% to $104.09 per barrel on September 17, while West Texas Intermediate (WTI) declined 1.2% to $101.15.
The easing of immediate supply fears comes as Saudi Arabia targets half of East-West pipeline capacity within days and full capacity within six weeks. However, the country's Yanbu storage is below 15 million barrels, down from nearly 21 million in July, preserving a crude risk premium.
The prospects for US-Iran talks could cap Brent near term, but any delay in pipeline repair could return prices to $108 high seen earlier in the week. US distillate stocks remained 13% below the five-year average in the week ending September 11, supporting refining margins while the pipeline restart remains unconfirmed.