West Texas Intermediate crude futures on the New York market closed lower on Thursday, September 17, after reports that Saudi Arabia decided to increase the volume of crude it ships to Asian refineries via Oman. October-delivery WTI crude fell 52 cents, or 0.51%, to close at 101.91 dollars a barrel, while November-delivery Brent crude fell 1.01 dollars, or 0.95%, to close at 104.82 dollars a barrel. The decline, a continuation from Wednesday, stemmed from reports that Saudi Arabia is using ship-to-ship transfers near Oman's port of Sohar to offset the impact of the shutdown of the East-West Pipeline, which was damaged in an attack. The East-West Pipeline is 1,200 kilometers long and in recent months has carried about 4 to 5 million barrels a day, or roughly 4 to 5 percent of global oil supply. Kpler estimates that if the pipeline stays shut for a month, the market could lose as much as 120 million barrels of oil supply. US Energy Secretary Chris Wright said he is confident Saudi Arabia will reopen the pipeline soon. Oil prices also fell after the US Energy Information Administration reported that crude stockpiles dropped by only 640,000 barrels last week, less than the 1.62 million barrels analysts had expected, while gasoline and distillate inventories rose last week.
Increased Saudi crude flows to Asia via Oman and smaller-than-expected US stockpile draw weigh on Brent.
Saudi Arabia boosting crude shipments to Asia via Oman offsets the pipeline shutdown, easing supply concerns and pushing WTI lower.
