International crude oil futures extended their decline in Asian trading on Thursday the 17th after reports that Saudi Arabia was using ship-to-ship crude transfers (direct transfers between vessels) off Oman’s Port of Sohar to increase supplies to Asian refiners. At 00:49 GMT, or 9:49 a.m. Taiwan time, Brent futures fell $1.24, or 1.2%, to $104.59 a barrel, while WTI futures dropped $1.14, or 1.1%, to $101.29. Both benchmarks had already fallen about $3 on Wednesday the 16th. The rerouting reduced concern that last week’s drone attacks on Saudi Arabia’s East-West Pipeline would cause a larger global supply disruption, although vessel traffic through the Strait of Hormuz remained well below its recent average. Regional crude premiums also rose sharply, with Omani crude reaching $132.09 a barrel and Murban crude approaching $124. U.S. inventory data added to the bearish pressure: crude stocks fell by about 640,000 barrels, far less than the market’s expected 1.62 million-barrel decline, while gasoline and distillate inventories increased. Market attention is turning to the pipeline restoration timeline and whether alternative export routes can continue covering the supply gap, as higher energy costs have begun lifting inflation expectations and bond yields.