Oil extends losses as Saudi Arabia reroutes shipments and Gulf risks persist

  • Saudi Arabia rerouted crude shipments and sought to restore about half of its damaged East-West Pipeline capacity within days.
  • Brent fell 0.75% to $104 a barrel, while WTI declined 0.69% to $101.20.
  • Fighting and restricted Gulf shipping, including a reported tanker incident in the Strait of Hormuz, continued to threaten supply flows.

Oil prices fell for a third straight session as Saudi Arabia's efforts to restore and reroute crude shipments eased immediate supply concerns, outweighing renewed fighting with Yemen's Iran-backed Houthis. Brent crude futures fell 79 cents, or 0.75%, to $104 a barrel by 0319 GMT, while U.S. West Texas Intermediate futures declined 70 cents, or 0.69%, to $101.20. Saudi Arabia sought to restore about half the capacity of its damaged East-West Pipeline within days and offered additional crude cargoes to Asian refiners through ship-to-ship transfers off Sohar, Oman. However, infrastructure damage, restrictions around the Strait of Hormuz and a reported tanker incident continued to threaten regional flows. Sources gave varying estimates for the pipeline's reopening and the return of normal shipments, leaving traders focused on whether the supply recovery would be sustained.

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