Oil Prices Fall as Saudi Arabia Offers Additional Crude Shipments Through Oman

Oil Prices Fall as Saudi Arabia Offers Additional Crude Shipments Through Oman

Fiona Craig

Wed, September 16, 2026 at 12:44 PM GMT+3 3 min read

• CL=F -1.15%

Oil prices declined on Wednesday following reports that Saudi Arabia was offering additional crude cargoes to Asian refiners through Oman, easing some concerns about the extent of supply disruptions in the Middle East.

At 08:01 GMT, Brent crude futures were down 83 cents, or 0.76%, at $107.92 a barrel. US West Texas Intermediate futures fell $1.41, or 1.33%, to $104.42 a barrel.

Both benchmarks had settled more than $3 higher in the previous session after shipping industry sources reported that crude loading operations at Saudi Arabia's Yanbu export hub had been suspended. Riyadh had also reportedly cancelled some deliveries to European customers.

The developments raised concerns about the availability of an alternative export route following disruptions to shipping through the Strait of Hormuz.

Saudi Arabia Offers Crude Through Sohar

Saudi Arabia is offering additional crude shipments to Asian refiners through ship-to-ship transfers near Oman's Sohar port, according to people familiar with the arrangements.

The alternative loading arrangements follow drone attacks that damaged a major Saudi oil pipeline connecting production facilities to the Red Sea.

UBS analyst Giovanni Staunovo said the reports of Saudi exports through the Gulf suggested that concerns about the potential scale of the disruption were easing.

Preliminary shipping data showed four visible vessel transits through the Strait of Hormuz on Tuesday, compared with seven on Monday and a 10-day average of 18.

Before the US-Israeli war on Iran began in late February, approximately one-fifth of global oil and liquefied natural gas supplies passed through the waterway.

Macquarie analysts said flows of crude oil, condensate and refined products through Hormuz had remained relatively resilient despite regional hostilities.

They estimated that shipments may have exceeded 7.5 million barrels per day since fighting resumed on 30 August, suggesting that vessel transit figures alone may not fully reflect the volume of oil moving through the strait.

Citi expects further near-term escalation in the Middle East to support crude and refined fuel prices. The bank forecasts that the Strait of Hormuz will eventually reopen in the fourth quarter of 2026, supported by regional diplomatic efforts. This remains Citi's forecast rather than a confirmed development.

Diesel Prices Reflect Supply Constraints

European diesel futures settled at a record high on Tuesday and reached their highest intraday level since April.

The increase occurred as disruptions in the Middle East constrained crude oil and refined product flows.

Staunovo said he expected diesel prices to remain supported unless a peace agreement was reached or conditions in Russia improved.

US Inventory Increase Adds to Price Pressure

US petroleum inventory data provided another factor behind Wednesday's decline in crude prices.

Market sources citing the American Petroleum Institute reported that US crude oil, gasoline and distillate inventories all increased in the week ended 11 September.

Crude stocks rose by 7.1 million barrels, compared with analysts' expectations for a decline of approximately 1.6 million barrels in a Reuters poll.

The unexpected increases in gasoline and distillate inventories also contributed to downward pressure on prices.

Haitong Futures said the inventory figures weighed on the market but argued that regional stock increases did not eliminate the broader constraints affecting global crude supplies.

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