Oil prices dip as Saudi export fears fade

Oil prices ended the week lower after three consecutive weeks of increases, as fears over Saudi Arabia’s export capacity diminished. Traders had become alarmed about possible disruptions following Houthi attacks on the country’s critical East-West pipeline, but recent reports of ship-to-ship transfers in the Gulf of Oman eased immediate supply concerns.

Brent crude settled at $103.65 per barrel, while West Texas Intermediate closed at $101.04, both still holding above the $100 mark. This level continues to push up fuel costs, which are already creating financial strain for drivers and governments alike.

The pipeline attacks forced Saudi Arabia to redirect its oil through alternative channels, including the Persian Gulf, where ship-to-ship transfers are now compensating for some of the lost output. Before the strikes, the East-West pipeline carried roughly 4 million to 5 million barrels per day, but those shipments were suspended. Limited storage at the port of Yanbu also led to canceled deliveries to Europe earlier in the week.

Industry experts acknowledge that even if Saudi Aramco restores around half of the pipeline’s capacity, the global supply gap will not disappear quickly. Priyanka Sachdeva, an analyst at Phillip Nova, warns that market tightness could linger unless physical oil movements stabilize and geopolitical risks in the Strait of Hormuz ease.