Oil Prices Fall as Saudi Arabia Eases Supply Concerns Through Oman

Oil prices fell on Wednesday, September 16, as additional Saudi crude shipments through Oman eased some concerns about supply disruptions, while weaker-than-expected US inventory data added downward pressure.

Brent crude futures were down 2.7% at $105.83 a barrel, while US West Texas Intermediate (WTI) crude fell 3.1% to $102.51 a barrel by 1:12 p.m. EDT, according to Reuters.

Saudi Arabia has been offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman's Sohar port. The move has helped reduce concerns about the impact of attacks on the country's East-West pipeline, which connects its oil-producing areas with the Red Sea.

Oil prices had risen by more than $3 in the previous session after reports that crude loadings at Saudi Arabia's Red Sea export hub of Yanbu had been suspended and some deliveries to European customers had been cancelled following attacks on the pipeline.

US inventory data also weighed on crude prices. The Energy Information Administration reported that US crude stocks fell by about 640,000 barrels in the previous week, significantly less than the 1.62 million-barrel decline expected by analysts polled by Reuters. Gasoline and distillate inventories also increased.

Meanwhile, disruptions around the Strait of Hormuz continued to affect the global oil market. Preliminary shipping data showed four visible vessel passages through the waterway on Tuesday, compared with a 10-day average of 18

The broader Middle East situation remained a source of uncertainty, with fighting involving Saudi Arabia and Yemen-based Houthi forces continuing. The Houthis said they had launched further strikes on Yanbu, while Saudi warplanes carried out strikes in Yemen, according to Reuters.