Brent Down 0.94% To $103.83 WTI Down 0.88% To $101.01 Oil Up 20% In September And +62% Year-On-Year Saudi East-West Pipeline Damaged By Houthi Drone Saudi Arabia Rerouting Crude Via Ship-To-Ship Transfers Near Oman’s Sohar Port Half Capacity Restored Within Days Full Recovery Within Six Weeks China Urges Iran To Curb Houthis
Oil prices fell on Friday as investors weighed fresh strikes between Saudi Arabia and Yemen’s Iran-backed Houthis against signs that additional Saudi crude could reach global markets and help ease supply concerns. Brent crude futures, the international benchmark, were down 0.94% to $103.83 per barrel. US West Texas Intermediate futures were down 0.88% to $101.01 per barrel. CNBC
Crude oil fell toward $101 per barrel on Friday, extending its decline for a third consecutive session as concerns over supply disruptions in the Middle East eased and hopes grew for renewed diplomatic efforts. Saudi Arabia is targeting the recovery of around half the capacity of its East-West pipeline within days, with a return to full operations expected within six weeks.
In the meantime, the Saudis are making additional crude cargoes available to Asian refiners through ship-to-ship transfers just outside Hormuz near Oman’s Sohar port, allowing shuttle vessels to transport crude through Hormuz before loading onto tankers waiting outside the strait, which allows these ships to avoid the risk of Iranian attack while sailing into the Gulf.
Reports also suggested that China had urged Iran to help curb Houthi militants after an appeal from Riyadh, as the rebel group intensified attacks on Saudi energy infrastructure. Meanwhile, President Donald Trump said he was weighing whether to resume attacks on Iran ahead of a meeting with Gulf leaders in New York next week.
Goldman Sachs raised its forecasts for Brent and WTI by $5 to $85 and $80 per barrel respectively for December 2026, and to $80 and $75 per barrel for 2027, warning that Brent could soar above $120 a barrel in 2027 if crude oil output in the Gulf remains four million barrels per day below prewar levels.
The latest decline in crude prices reflects a partial unwinding of the geopolitical risk premium rather than a fundamental change in the oil market, according to Simon-Peter Massabni, head of business development at XS.com. Improved logistics for Saudi crude exports have reduced the market’s assessment of how much supply is at risk.
The pipeline is damaged. The reroute is working for now. But every fresh Houthi missile changes the arithmetic.
Check out our previous coverage of the oil market on The Trusted Times.
