Oil prices fell on Wednesday, September 16, after Saudi Arabia moved to offer additional crude supplies through Oman, easing some concerns about disruptions to Middle Eastern exports. However, the decline was limited as geopolitical tensions and supply constraints continued to support energy prices.
Brent crude futures fell 0.67% to around $107.53 a barrel, while U.S. West Texas Intermediate crude declined 1.55% to about $104.19 a barrel in early trading. Both benchmarks had gained more than $3 on Tuesday, reaching their highest settlement levels since May 19.
The latest price movement followed reports that Saudi Arabia’s state oil company, Saudi Aramco, was offering additional cargoes of crude to Asian refiners for loading through ship-to-ship transfers off Oman’s Sohar port.
The cargoes reportedly include Saudi Arabia’s flagship Arab Light grade, as well as Arab Medium and Arab Heavy. Sohar provides an alternative route outside the Strait of Hormuz, allowing Saudi crude to be transferred to customers while reducing reliance on the strategic waterway.
The move comes after drone attacks damaged Saudi Arabia’s East-West oil pipeline, which transports crude from the kingdom’s eastern oilfields toward the Red Sea. Saudi Arabia subsequently faced disruptions at its Yanbu export facility and cancelled some cargoes destined for European customers.
The alternative shipments through Oman have therefore helped ease immediate fears that Saudi Arabia could be unable to maintain supplies to international buyers.
Oil markets are also being influenced by developments in the United States. U.S. crude inventories increased by 7.1 million barrels during the week ended September 11, according to data cited by Reuters.
The increase was significantly larger than analysts had expected and provided additional pressure on crude prices.
Despite the softer crude market, refined fuel prices remain under considerable pressure. Diesel prices in Europe are trading close to record highs as disruptions to Middle Eastern exports combine with refinery problems elsewhere.
Russia is also expected to maintain restrictions on diesel exports through October, adding to concerns about available supplies in international markets.
The divergence between crude and refined-product prices highlights the continuing strain in global energy markets.
While additional Saudi supplies through Oman have reduced some concerns about crude availability, traders remain focused on shipping routes, refinery operations and geopolitical developments across the Middle East.
For consumers and businesses, particularly those heavily dependent on diesel for transportation, agriculture and industrial operations, elevated refined-fuel prices could continue to create cost pressures even if crude prices retreat further.
