Oil prices fall after Saudi Arabia decides to increase supplies via Oman

World oil prices continued to fall on September 17 after reports of additional supplies from Saudi Arabia via Oman. The news eased market concerns about a possible shortage amid the unstable situation in the Middle East.

As of this morning, Brent crude futures fell by 0.2% to $105.64 per barrel. American WTI lost 0.3% and traded at $102.10 per barrel. The day before, both brands fell by about $3.

What affected prices

One of the main factors was Saudi Arabia’s decision to send additional oil volumes via Oman. This partially reduced concerns about supply disruptions.

Additionally, the market is influenced by expectations of a possible easing of tensions in the Middle East ahead of the US-China summit. At the same time, experts warn that additional supplies can only partially compensate for losses related to problems with Saudi oil exports through the Red Sea.

Oil may rise again

The risks of a new price jump remain due to the tense situation in the Strait of Hormuz and the Red Sea.

Suvro Sarkar, head of energy research at DBS Bank, admits that in the current scenario, the price of oil could rise to $120 per barrel, and then potentially return to a level of around $100.

The oil market has been significantly affected in recent months by geopolitical tensions, the situation around the Strait of Hormuz and the risks of supply disruptions from the Middle East. On September 14, an additional factor was the shutdown of a Saudi pipeline after an attack, which posed a threat to part of global supplies.