Oil prices declined on Wednesday as reports that Saudi Arabia was arranging additional crude shipments through Oman eased concerns over disruptions to global supplies.
According to media reports, a smaller-than-expected drawdown in US crude inventories also weighed on prices.
Brent crude futures fell $3.63, or 3.3%, to $105.12 a barrel by 1523 GMT, while US West Texas Intermediate (WTI) declined $4.11, or 3.9%, to $101.72.
Saudi Arabia is offering additional crude cargoes to Asian refiners through ship-to-ship transfers near Oman’s Sohar port, according to people familiar with the matter.
The move could help offset some of the supply impact caused by attacks on Saudi Arabia’s East-West pipeline, which carries crude towards the Red Sea.
UBS analyst Giovanni Staunovo said reports of Saudi crude exports through the Gulf indicated that fears over a larger supply disruption were beginning to ease.
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