Oil falls as Saudi Arabia reroutes crude via Sohar port
Oil prices took a hit on Thursday, with Brent crude dropping to $104.59 a barrel and US West Texas Intermediate sliding to $101.29.
The main reason? Saudi Arabia was offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman's Sohar port after drone attacks disrupted one of its key pipelines.
Saudi Arabia's actions reassure oil traders
This reroute helped ease concerns about oil shortages, something that had markets on edge.
Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, a unit of Nissan Securities, pointed out that Saudi Arabia's quick response, plus upcoming U.S.-China talks, reassured traders.
Meanwhile, repairs are underway on the damaged pipeline, and Saudi Arabia has stepped up efforts to move more crude through the Strait of Hormuz with US military assistance.