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Oil
Source: Newsmaker.id
Oil prices slumped during Thursday's trading (Sept. 17), falling approximately 3% to a one-week low after reports of additional Saudi oil supplies routed through Oman eased concerns regarding distribution disruptions. Brent crude fell 3.64% to around US$101.98 per barrel, while West Texas Intermediate (WTI) weakened 2.93% to US$99.43 per barrel. Despite the pullback, oil prices remained above the US$100 mark due to persistent risks of conflict in the Middle East.
The drop in oil prices followed signals that Saudi oil flows could soon stabilize. Saudi Arabia reportedly offered additional crude shipments to Asian buyers via ship-to-ship transfers near the port of Sohar, Oman. This move helped mitigate the impact of disruptions caused by damage to the East-West pipeline, which had previously raised concerns about global supplies.
Earlier, oil prices had surged to a four-month high following reports of a temporary halt in shipments from the Yanbu export terminal on the Red Sea. The disruption stemmed from an attack on the infrastructure of the Saudi East-West pipeline, a critical route for transporting crude oil to global markets.
Although oil prices have begun to retreat, supply risks remain a primary market concern. Damage to two pumping stations serving the East-West pipeline has left the timeline for full recovery unclear. Prolonged disruption to these facilities could potentially reduce global oil supplies and keep prices elevated.
Beyond crude oil, the energy market is also focusing on supply pressures regarding diesel. Energy infrastructure disruptions in the Middle East, combined with limited Russian refining capacity, have tightened diesel availability. These conditions have pushed diesel prices to record highs in several key markets and increased the risk of energy-driven inflationary pressure.
Newsmaker Analysis: The current weakening in oil prices reflects a reduction in short-term supply concerns rather than an end to geopolitical risks. As the Middle East conflict persists and energy infrastructure remains a target for attacks, the oil risk premium is likely to remain elevated. Looking ahead, the market will closely monitor the pace of repairs to Saudi pipelines, developments in the US-Iran conflict, and supply conditions for energy products such as diesel, which are emerging as a new area of concern. (arl)
Source: Newsmaker.id