Business Standard ·
Economy, business and finance
Oil prices fall as Saudi crude cargoes ease fears of supply disruption
Brent crude fell 1.2 per cent to $104.59 a barrel, while WTI dropped 1.1 per cent to $101.29 as concerns over Middle East supply eased
Oil prices fell in early trade on Thursday, extending the previous day's losses, as reports of Saudi Arabia offering extra crude cargoes through Oman reduced fears of supply disruptions in West Asia.
Brent crude futures dropped $1.24, or 1.2 per cent, to $104.59 a barrel by 0049 GMT, while US West Texas Intermediate futures were down $1.14, or 1.1 per cent, at $101.29. Both contracts fell about $3 on Wednesday.
"Concerns over supply tightness eased slightly following news that Saudi Arabia would ship cargo via Oman," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
"Expectations of progress toward easing tensions in West Asia ahead of US-China summit next week are also capping price gains," he added.
Saudi Arabia is offering more loadings of crude oil to Asian refiners via ship-to-ship transfers off Oman's Sohar port, people familiar with the matter said, blunting some of the hit to global supply from attacks on the Saudi Arabia's East-West pipeline to the Red Sea.