Oil Prices Slip 2% as Saudi Shift to Oman Shipping Alleviates Supply Concerns

Brent crude futures fell 1.2 % to $104.59 a barrel by 0049 GMT, a drop of $1.24, while U.S. West Texas Intermediate slipped 1.1 % to $101.29, down $1.14. The two contracts had already slipped about $3 on Wednesday.

The decline follows reports that Saudi Arabia will ship additional crude cargoes via Oman, easing worries that the recent suspension of loadings at the Yanbu export terminal—triggered by attacks on the East‑West pipeline—could tighten global supply. Ship‑to‑ship transfers off Oman's Sohar port are expected to bring more barrels to Asian refiners.

Oil prices had reached four‑month highs earlier in the week after shipping‑industry sources confirmed that Yanbu’s loadings had been halted and Riyadh had canceled some deliveries to Europe. Yanbu became Saudi Arabia’s primary export hub after Iran’s blockade of the Strait of Hormuz in late February.

While the market remains sensitive to the escalating Middle East conflict—Saudi jets have struck Yemen and Houthi forces have fired drones and missiles at Saudi cities—U.S. Energy Information Administration data showed a smaller-than‑expected draw from U.S. crude inventories, with stocks falling 640,000 barrels last week versus an anticipated 1.62 million‑barrel decline.

The combination of Saudi shipping adjustments and a modest inventory draw has muted the impact of regional tensions, keeping oil prices in a modest decline as traders assess the evolving geopolitical landscape.