Saudi Shipments Offset Pipeline Disruption Concerns as Oil Prices Decline
Oil prices declined on Thursday, extending Wednesday's pullback as signs of extra Saudi crude flows through Oman eased supply disruption concerns. Brent crude fell to $104.74 and WTI to $101.6.
The additional Saudi shipments via ship-to-ship transfers off Oman's Sohar port helped offset the pipeline disruption caused by attacks on the East-West pipeline that feeds the Red Sea export terminal at Yanbu. The suspension of operations had raised concerns about a potential 4% reduction in global oil supply if the pipeline remained out of commission for an extended period.
However, US Energy Secretary Chris Wright indicated that Saudi Arabia's East-West pipeline could return to service sooner than expected, with crude flowing through it within days. This news, combined with the extra shipments via Oman, alleviated some of the immediate supply anxiety.