Oil extends decline as Saudi supply improves and Brent nears $106

  • Oil prices declined as Saudi Arabia improved supply routes and sought to restore its damaged East-West Pipeline.
  • Brent fell to $105.83 a barrel and WTI to $102.21, while Saudi Arabia targeted half-pipeline capacity within days and full operations in about six weeks.
  • Hormuz shipping remained below prewar levels as U.S.-Iran tensions continued, although U.S.-Houthi dialogue and alternative Saudi shipments eased disruption concerns.

Oil extended its biggest decline in more than six weeks as Saudi Arabia improved flows through alternative routes and sought to restore its damaged East-West Pipeline, easing immediate concerns over Middle Eastern supply disruptions. Brent futures fell to $105.83 a barrel and West Texas Intermediate declined 0.2% to $102.21 by 21:36 ET (01:36 GMT). Saudi Arabia aimed to restore about half of the pipeline's capacity within days and full operations in about six weeks, according to a person familiar with the matter. Additional crude was offered to Asian refiners through ship-to-ship transfers off Oman's Sohar port, while U.S.-Houthi dialogue also reduced some disruption concerns. Losses remained limited because shipping through the Strait of Hormuz stayed at a fraction of prewar levels, U.S.-Iran tensions persisted and U.S. crude inventories posted a third consecutive weekly decline. Brent remained up 1.2% for the week after reaching nearly $110 earlier following a Houthi offensive against Saudi energy infrastructure.

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