International crude oil prices dropped for the second consecutive day today in Asian trading. The oil prices eased after Saudi Arabia offered supply of additional crude through Oman.
However, prices remained above $100 a barrel as investors remained concerned about the expanding Middle East conflict. Brent crude futures declined 19 cents, or 0.2%, to $105.64 a barrel by 0347 GMT. Two days ago, Brent price hit $110 a barrel.
Meanwhile, US West Texas Intermediate futures dropped 33 cents, or 0.3%, to $102.10. Both benchmarks fell around $3 on Wednesday.
Saudi shipments ease supply concerns
Saudi Arabia is offering additional crude shipments to Asian refiners through ship-to-ship transfers near Oman’s Sohar port. The move has reduced some concerns about global supply losses following attacks on Saudi Arabia’s East-West pipeline.
However, analysts said the additional shipments would only partially offset lost exports from the kingdom’s Red Sea port.
Earlier this week, oil prices reached four-month highs after Saudi Arabia suspended crude loadings at Yanbu and cancelled some European deliveries.
Two pumping stations supplying the East-West pipeline suffered damage during an attack last week. Oil and security sources said the repair timeline remains unclear.
Middle East conflict keeps pressure on prices
The Strait of Hormuz has gained importance after Iran imposed a blockade following US and Israeli attacks. Before the conflict, the waterway carried around one-fifth of global oil supplies.
Meanwhile, Saudi warplanes attacked Yemen as Houthi fighters launched drones and missiles at Saudi cities, according to the Iran-backed group. DBS Bank expects Brent crude to stabilise between $85 and $95 a barrel if the US-Iran war eases during the fourth quarter.
However, its bearish scenario sees prices potentially reaching $120 if attacks continue around the Hormuz and Red Sea routes.
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