Global oil prices drop 1.2% as Saudi seeks alternate routes after pipeline attack
Global oil prices dropped by 1.2% after Saudi Arabia announced alternative crude shipment routes through Oman, easing concerns over supply disruptions following pipeline attacks. This move helps offset the impact of drone attacks on its East-West pipeline and reduces pressure on the Strait of Hormuz.
Why it matters
This impacts global energy markets and prices, affecting consumers and industries worldwide. It also highlights geopolitical vulnerabilities in oil supply chains and the strategic importance of waterways like the Strait of Hormuz.
Oil prices fell on Thursday, extending the previous session's losses, as reports that Saudi Arabia was arranging additional crude shipments through Oman eased concerns over 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 futures dropped $1.14, or 1.1%, to $101.29. Both contracts fell about $3 on Wednesday."Concerns over supply tightness eased slightly following news that Saudi Arabia would ship cargo via Oman," said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, a unit of Nissan Securities, to Reuters.Expectations of progress towards easing tensions in the Middle East ahead of a US-China summit next week were also capping prices, he added.Saudi seeks alternative routesSaudi Arabia is offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman's Sohar port, people familiar with the matter said.The move could partly offset the disruption to Saudi exports…
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in