Oil Extends Decline as Supply Concerns Ease

Crude oil fell to around $102 per barrel on Thursday, extending losses for a second consecutive session following reports that Saudi Arabia plans to restore roughly half the capacity of its East-West pipeline within days and bring it back to full operation within six weeks. The key pipeline, which provides an alternative route around the Strait of Hormuz, was damaged in drone attacks last week. In the meantime, Saudi Arabia has stepped up efforts to transport more crude through Hormuz with assistance from the US military. Meanwhile, US Energy Secretary Chris Wright said that 18 million barrels of crude and petroleum products passed through Hormuz earlier this week. In the US, official data showed that crude inventories declined by 640,000 barrels to 423.4 million barrels, although the decrease was smaller than analysts had anticipated. The figures differed sharply from the API’s earlier estimate of a 7.1 million-barrel increase in crude inventories.