Saudi Arabia — Oil prices fell on Wednesday after Saudi Arabia offered additional crude shipments through Oman, giving some relief to a market increasingly worried about disruptions to energy supplies across the Middle East.
Brent crude futures dropped 83 cents, or 0.76%, to $107.92 a barrel at 0801 GMT. U.S. West Texas Intermediate futures declined $1.41, or 1.33%, to $104.42.
The decline came after oil prices surged by more than $3 in the previous session. Shipping sources had reported that Saudi Arabia suspended loadings at its Red Sea export hub of Yanbu and canceled several shipments to European customers.
The developments indicated that Saudi Arabia was seeking to preserve some of its export flows despite damage to a major oil pipeline linking its production areas with the Red Sea. People familiar with the situation said the kingdom was offering more crude to Asian refiners through ship-to-ship transfers near Oman’s Sohar port.
That alternative export route eased some fears that Saudi Arabia’s supply disruptions could expand further or persist for an extended period.
UBS analyst Giovanni Staunovo said reports indicating Saudi Arabia could continue exporting crude from the Gulf suggested market concerns about the size of the disruption were beginning to diminish.
However, shipping through the Strait of Hormuz remained severely restricted. Preliminary data showed four visible vessel transits through the waterway on Tuesday, compared with seven the previous day and far below the 10-day average of 18.
The Strait of Hormuz remains a critical passage for global energy markets. Before the U.S.-Israeli war on Iran began in late February, roughly one-fifth of the world’s oil and liquefied natural gas supply moved through the waterway.
Macquarie analysts said crude, condensate and refined-product flows through the strait had remained relatively resilient despite the conflict and could have risen to more than 7.5 million barrels per day since fighting resumed on August 30.
The analysts also said the connection between vessel activity through the strait and actual oil flows appeared to have weakened.
Even with Wednesday’s price decline, the broader oil market remains vulnerable to the possibility of extended supply disruptions. Citi said it expected near-term escalation in the Middle East to continue supporting crude and refined-fuel prices before the Strait of Hormuz eventually reopens in the fourth quarter of 2026, with regional diplomatic efforts helping that process.
Fuel markets are also showing increasing pressure. European diesel futures closed at a record high on Tuesday and reached their highest intraday level since April as interruptions to crude and refined-product flows tightened available supplies.
Saudi Arabia’s latest shipments through Oman consequently offered some immediate relief to the market, but broader risks to energy supplies remain.
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