Oil prices extended their recent decline on Thursday following reports that Saudi Arabia was taking measures to maintain crude exports amid supply disruptions in the Middle East. Both major crude benchmarks remained above $100 per barrel.
At 08:18 GMT, Brent crude futures fell 0.9% to $104.85 per barrel, while West Texas Intermediate (WTI) futures declined 0.6% to $101.85.
The retreat followed reports of efforts by Saudi Arabia to address disruptions to oil shipments through the Red Sea, where advances by Houthi forces along Yemen’s western coast have increased concerns about access to the Bab el-Mandeb Strait.
The waterway connects the Red Sea with the Gulf of Aden and serves as an important route for Saudi Arabian oil exports.
According to Reuters, Saudi Arabia was offering additional crude shipments to Asian refiners through ship-to-ship transfers near the port of Sohar in Oman, allowing some exports to continue despite regional military tensions.
Bloomberg also reported that Saudi Arabia was seeking to restore approximately half the capacity of its east-west oil pipeline within days. Operations had been suspended the previous week following Houthi attacks.
Analysts at UBS indicated that these developments could allow Saudi Arabia to increase its oil exports.
Diplomatic Developments and Shipping Disruptions Remain in Focus
Reuters reported that representatives from the United States and the Iran-backed Houthis met in Oman over the weekend.
During the discussions, the Houthis reiterated their commitment to a 2025 ceasefire and pledged not to attack US or Israeli vessels, according to the report.
Separately, US President Donald Trump repeated his assertion on Wednesday evening that Iran was seeking a peace agreement. He said the United States was “hopefully toward the end” of the war.
However, Washington and Tehran remained divided over the Strait of Hormuz, where shipping activity continued at a fraction of its prewar level.
Data from Kpler, cited by Reuters, showed that only three commodity vessels passed through the Strait of Hormuz on Wednesday, compared with 12 on Tuesday.
Traffic through the Bab el-Mandeb Strait also declined, with 21 vessels crossing on Wednesday, down from 24 the previous day.
The reported measures to maintain Saudi oil exports coincided with Thursday’s decline in crude prices, although disruptions to major shipping routes and uncertainty surrounding the conflict continued to affect the supply outlook.