Crude oil prices fall as Saudi Arabia increases supplies via Oman

Crude oil prices extended losses on September 17 after reports that Saudi Arabia was offering additional crude oil supplies via Oman. The move partly eased concerns over potential supply disruptions amid tensions in the Middle East.

As of 03:47 GMT, Brent crude oil futures fell 0.2% to $105.64/barrel, while WTI crude oil declined 0.3% to $102.10/barrel. Both contracts had lost around $3 in the previous session.

Market participants expect additional crude oil flows via Oman to partly offset constraints on other routes. However, analysts note that these volumes may not be enough to fully compensate for lost supplies from Saudi Arabia’s Red Sea port.

Expectations of a possible easing in Middle East tensions are also weighing on crude oil prices. At the same time, shipping risks in the Strait of Hormuz and the Red Sea remain elevated.

DBS Bank estimates that if attacks and incidents continue, crude oil prices could rise again to $120/barrel before potentially normalizing toward around $100/barrel.

Tags: prices, Saudi Arabia, crude oil, Oman