Oil prices fall on Thursday

Oil prices fell on Thursday as additional Saudi crude shipments through Oman eased concerns over supply disruptions, although prices remained above $100 a barrel amid fears the Middle East conflict could widen.

Brent crude futures fell $1.09, or 1.03 per cent, to $104.74 a barrel at 0801 GMT, while US West Texas Intermediate (WTI) declined 83 cents, or 0.81 per cent, to $101.60. Both contracts dropped about $3 on Wednesday.

Saudi Arabia is offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman’s Sohar port, helping offset disruptions caused by attacks on the East-West pipeline, according to people familiar with the matter.

The pipeline supplies Saudi Arabia’s Red Sea export hub of Yanbu, where crude loadings were suspended earlier this week. Traders have warned that a prolonged closure could affect up to 4 per cent of global oil supply.

Supply risks remain as two pumping stations serving the pipeline were damaged in an attack last week, with the repair timeline still unclear.

Meanwhile, disruptions to energy infrastructure in the Middle East and Russia have tightened diesel supplies, with European gasoil and US ultra-low sulfur diesel futures reaching record highs earlier this week.

Attribution: Reuters