Oil slides below $106 on easing supply concerns

September 17, 2026 (MLN): Oil prices extended their decline on Thursday as concerns over potential supply disruptions eased after Saudi Arabia began arranging alternative crude shipments following attacks on its key East-West pipeline.

Currently, Brent crude futures is down, 2.14%, at $105.77 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is up by $2.43, or 2.32%, to $102.21 per barrel by [10:31 am] PST

Saudi Arabia is making additional crude cargoes available to Asian refiners through ship-to-ship transfers near Oman’s Sohar port, helping offset some of the supply impact from the attacks on the kingdom’s East-West pipeline to the Red Sea, Reuters reported.

U.S. Energy Secretary Chris Wright said Tuesday that the disruption to the East-West pipeline was a “brief and temporary interruption” expected to last only a few days, helping calm concerns over a prolonged supply shortage.

Earlier this week, Saudi Arabia halted crude loadings at its Red Sea export terminal in Yanbu and canceled some shipments to European customers following the disruption.

Yanbu has emerged as a key export route for Saudi crude after Iran began blocking the Strait of Hormuz following U.S. and Israeli attacks on Iran in late February.

Peter Massabni, head of business development at XS.com, said Saudi Arabia’s efforts to secure alternative export routes had reassured markets that part of the disrupted crude supply could return.

However, he noted that the oil market outlook remains closely tied to developments in the Middle East.

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