London: Oil prices fell for a second day on Thursday as concerns about a major disruption to Saudi Arabia's crude exports eased after the country offered additional oil cargoes through Oman to Asian buyers.
Brent crude fell $1.88, or 1.8 percent, to $103.95 a barrel at 0632 GMT. US West Texas Intermediate crude fell $1.77, or 1.7 percent, to $100.66 a barrel. Both benchmarks had fallen by about $3 on Wednesday.
The decline followed reports that Saudi Arabia was offering additional crude cargoes to Asian refiners through Oman. Some of the oil was reportedly being moved through ship to ship transfers near Sohar, giving Saudi Arabia another way to move crude while its normal export routes remain disrupted.
The development has eased some concerns in the oil market about the possible size of the Saudi supply loss following attacks on energy infrastructure.
Saudi Arabia's East West pipeline was shut after attacks on September 10. The Ministry of Energy said the pipeline was closed as a precaution while emergency and technical teams assessed the damage.
The pipeline is an important part of Saudi Arabia's oil transport network. It carries crude from the country's eastern oil producing areas towards Yanbu on the Red Sea. The route allows Saudi Arabia to move oil without sending all of its exports through the Strait of Hormuz.
The pipeline is about 1,200 kilometres long and has a capacity of about 7 million barrels of crude a day. Its full capacity, however, should not be treated as the amount of oil currently lost because of the disruption.
The shutdown has also affected crude shipments from Yanbu. Some Saudi oil cargoes have been cancelled as refiners and traders seek alternative supplies.
Saudi Arabia's efforts to move additional crude through Oman have therefore become an important factor for the market. The alternative shipments have reduced fears of an immediate and much larger shortage of Saudi oil.
But the latest fall in prices does not mean that the wider Middle East energy crisis has been resolved.
Oil flows through the Strait of Hormuz have increased from their recent lows, but they remain well below normal levels. The strait is one of the world's most important routes for oil shipments, carrying large volumes of crude and other energy products to international markets, particularly in Asia.
Before the current crisis, nearly 20 million barrels of oil passed through the Strait of Hormuz each day in 2025, according to the International Energy Agency. The majority of those shipments went to Asian markets.
The disruption has had a significant effect on global oil supplies. The International Energy Agency said in its September oil market report that more than 10 million barrels per day of Gulf oil production remained shut in during August.
The agency also said global oil inventories fell by another 95 million barrels in August. Total inventory withdrawals since February reached 507 million barrels.
The figures show that significant disruptions to international oil supplies remain even as prices have declined over the past two days.
Maritime security remains another major concern. The International Maritime Organization said on September 16 that it had verified 80 attacks on merchant vessels in and around the Strait of Hormuz since the conflict began on February 28. At least 22 seafarers have been killed in those attacks.
The Red Sea region is also facing continuing security problems. Fighting involving Houthi forces in Yemen has intensified, creating another risk for ships and energy supplies moving through the region.
The Houthis have made claims about attacks on Saudi targets, while Saudi Arabia has carried out military action against Houthi positions. Some battlefield claims have not been independently verified.
The latest movement in oil prices therefore reflects a change in immediate market expectations rather than a return to normal conditions. Saudi Arabia's alternative shipments through Oman have reduced some concerns about the loss of its normal export routes, while major disruptions to oil production and shipping remain.
Traders are continuing to watch developments in Saudi Arabia, the Strait of Hormuz and Yemen closely. Any further attacks or disruption to major energy routes could quickly increase pressure on oil supplies and prices.
For now, Brent crude remains above $100 a barrel despite the recent decline. The market is responding to signs that some Saudi oil can still reach buyers, while the wider Middle East supply and shipping crisis remains unresolved.