Oil prices fall as supply disruption fears ease

Highlights

Oil falls, with WTI falling below $100.
Additional Saudi cargoes through Oman eased supply concerns.
Middle East disruptions continue to pose risks to oil flows.

Brent crude futures fell 3.32% to $102.32 a barrel, while U.S. West Texas Intermediate futures dropped 2.72% to $99.64, according to the latest market data provided Thursday. Prices weakened as Saudi Arabia made additional crude available to Asian refiners through ship-to-ship transfers near Oman’s Sohar port, helping offset disruption from attacks on the East-West pipeline, Reuters reported.

Saudi cargoes ease immediate pressure

The latest decline follows a sharp reversal from four-month highs reached earlier this week. Crude had rallied after loadings at Saudi Arabia’s Red Sea export hub at Yanbu were suspended and some deliveries to European customers were canceled following attacks on the pipeline supplying the terminal.

Saudi Arabia has since sought alternative ways to maintain exports. Additional cargoes offered to Asian refiners through transfers off Oman have reassured traders that some barrels can continue reaching the market despite the disruption.

Expectations that the East-West pipeline could return to service relatively quickly have also reduced the risk premium. U.S. Energy Secretary Chris Wright indicated this week that crude flows could resume within days.

Pipeline damage keeps supply risks alive

The market has not fully discounted the threat to Saudi exports. Two pumping stations serving the East-West pipeline were damaged in an attack last week, and Saudi Arabia has not announced a timetable for restoring normal operations.

A prolonged shutdown could remove as much as 4% of global oil supply, according to traders cited in the supplied material. The pipeline has become particularly important as an alternative export route while shipping through the Strait of Hormuz, one of the world’s most critical maritime energy corridors, remains disrupted.

Fuel markets are also under pressure. European gasoil futures settled at a record high on Tuesday, while U.S. ultra-low sulfur diesel futures also reached a record settlement. Constraints on Russian refining capacity have added to concerns over diesel availability.

Oil remains exposed to regional escalation

Thursday’s decline shows how quickly supply expectations can change as Saudi Arabia reroutes exports and works to restore damaged infrastructure. Yet the underlying geopolitical risk has not disappeared.

For markets, the distinction between crude availability and refined-product supply is becoming increasingly important. Even with Brent at around $100 a barrel and WTI below $99, persistent pipeline disruptions, constrained refining capacity, and tight diesel markets could keep energy prices elevated and add to inflationary pressure.

Earlier, we reported that Trump says an Iran war may be nearing its end.

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