Oil Prices Fall for Third Session as Saudi Supply Concerns Ease

Oil prices continued to decline on Friday, September 18, marking a third consecutive session of losses. Expectations that Saudi Arabia could partially restore its export capacity reduced immediate supply concerns, outweighing fresh geopolitical tensions in the Middle East.

At the time of reporting, November Brent crude futures had fallen $2.38/bbl (2.27%) to $102.44/bbl, while October WTI futures declined $2.00/bbl (1.96%) to $99.91/bbl.

The latest losses followed Thursday’s weaker settlement, when Brent closed $1.01 lower at $104.82/bbl and WTI fell 52 cents to $101.91/bbl.

Saudi Recovery Expectations Reduce Supply Pressure

Crude prices had approached four-month highs earlier this week after Saudi Arabia suspended loadings at its Red Sea export hub in Yanbu and cancelled some European deliveries following damage to the kingdom’s East-West Pipeline in an attack last week.

Since then, prices have eased as reports indicated that Saudi Arabia is working to restore approximately half of the pipeline’s capacity within days.

Saudi Arabia has also reportedly offered additional crude cargoes to Asian refiners through ship-to-ship transfers near Sohar, Oman. The additional supply has helped reduce concerns about an immediate shortage of Saudi crude.

Hormuz Disruptions Continue to Support Prices

Despite the recent decline, geopolitical supply risks remain significant. Saudi Arabia and the Houthis exchanged further strikes across their border on Thursday, while tanker movements through the Strait of Hormuz remain heavily restricted.

Iran’s Revolutionary Guards also reported that a Togo-flagged oil tanker was hit while attempting to transit the strait.

Market participants are now monitoring the pace of Saudi export recovery and looking for signs of normalization in physical crude flows.

Although Brent has declined for three consecutive sessions, it remains above $100/bbl, reflecting continued uncertainty surrounding Middle Eastern oil supplies and shipping routes.

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