HOUSTON: Oil prices eased about 2 per cent on Thursday to a one-week low, after reports of additional Saudi crude cargoes through Oman eased supply concerns, though prices stayed above $100 a barrel on fears the Middle East conflict could widen.
Brent crude futures were down $2.67, or 2.5pc, to $103.13 a barrel at 12:03pm ET (1603 GMT), after touching their lowest level since September 10.
US West Texas Intermediate futures were down $1.61, or 1.6pc, at $100.82 a barrel, their lowest since September 11. On Wednesday, both contracts fell about $3.
Crude retreated from weekly highs after US Energy Secretary Chris Wright signalled a quicker return to service for Saudi Arabia’s East-West pipeline, while Saudi efforts to maintain shipments via additional loadings off Oman eased supply worries, said Tim Waterer, chief market analyst at KCMTrade.
Saudi Arabia is offering more crude cargoes to Asian refiners through ship-to-ship transfers off Oman’s Sohar port, people familiar with the matter said. This will offset some of the disruption caused by attacks on the EastWest pipeline to the Red Sea.
Saudi Arabia is also seeking to return about half the capacity of its East-West oil pipeline within days after the link was halted last week following drone attacks, Bloomberg reported.
-Reuters