Oil prices moved lower on Thursday as investors assessed reports of measures by Saudi Arabia to maintain crude shipments and restore disrupted export infrastructure.
Despite the decline, Brent and West Texas Intermediate (WTI) futures continued to trade above $100 per barrel amid ongoing uncertainty surrounding oil supplies from the Middle East.
At 08:18 GMT, Brent futures were down 0.9% at $104.85 a barrel, while WTI futures declined 0.6% to $101.85.
The latest price movements followed reports that Saudi Arabia was taking steps to address disruptions affecting oil exports through the Red Sea.
Advances by Houthi forces along Yemen’s western coastline have raised concerns about access to the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden and forms an important shipping route for Saudi crude exports.
Reuters reported that Saudi Arabia was offering additional crude cargoes to Asian refiners through ship-to-ship transfers near Oman’s Sohar port.
The arrangement would allow some oil shipments to continue despite the military tensions affecting established export routes.
Separately, Bloomberg reported that Saudi Arabia was working to restore approximately half the capacity of its main east-west oil pipeline within days.
Operations at the pipeline had been halted the previous week following attacks by Houthi forces.
UBS analysts indicated that the reported measures could support an increase in Saudi Arabian oil exports.
US-Houthi Talks and Iran Conflict Remain in Focus
Diplomatic developments also attracted attention following reports of discussions between US representatives and the Iran-backed Houthis.
According to Reuters, the two sides met in Oman over the weekend.
The Houthis reiterated their commitment to a ceasefire agreed in 2025 and pledged not to target US or Israeli vessels, the report said.
US President Donald Trump also repeated his assertion on Wednesday evening that Iran was seeking a peace agreement.
Trump said the United States was “hopefully toward the end” of the war.
However, disagreements between Washington and Tehran over the Strait of Hormuz remained unresolved, and shipping activity through the waterway continued at substantially reduced levels.
Kpler data cited by Reuters showed that three commodity vessels passed through the Strait of Hormuz on Wednesday, down from 12 on Tuesday.
Traffic through the Bab el-Mandeb Strait also declined, with 21 vessel crossings recorded on Wednesday compared with 24 the previous day.
The reported efforts to maintain Saudi crude exports provided a potential source of supply relief as oil prices declined. Nevertheless, reduced shipping activity through the region’s major maritime routes continued to highlight uncertainty over the availability and transportation of crude.
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