Oil is getting cheaper amid reduced fears of supply disruptions from the Middle East

Today, 09:16◉ 02 min readEditorial team “SHCHO STALOSIA”

Oil prices fell slightly on Thursday amid easing concerns about supply disruptions in the Middle East after reports that Saudi Arabia is offering additional shipments of oil for shipment through Oman. Ukrinform.

Oil is getting cheaper amid reduced fears of supply disruptions from the Middle East

Brent crude futures fell 19 cents, or 0.2%, to $105.64 a barrel, while West Texas Intermediate (WTI) crude futures lost 33 cents, or 0.3%, to $102.10 a barrel.

It is noted that on Wednesday the value of both contracts fell by about $3.

Saudi Arabia is proposing to Asian refiners to increase the volume of oil shipment by transshipment from ship to ship near the port of Sohar (Oman). This partially mitigatesthe impact on global supplies caused by the attacks on the Saudi East-West pipeline leading to the Red Sea.

At the same time, there are concerns about the escalation of the conflict in the Middle East.

On Wednesday, the Iranian-backed Houthis said Saudi warplanes had struck Yemen and the Houthis themselves had attacked Saudi cities with drones and missiles.

Context

“Concerns about supply shortages have eased somewhat following news that Saudi Arabia will supply oil through Oman,” said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment.

As reported by Ukrinform, oil prices fell slightly on Wednesday, September 16, after an unexpected increase in crude oil inventories in the United States.

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According to him, rising prices are also holding back expectations of progress in easing tensions in the Middle East ahead of the US-China summit next week.

Some analysts, including Saxo Bank, expect that this will only partially compensate for the loss of exports from the kingdom's port on the Red Sea and curb the fall in oil prices.