Saudi reroutes oil through Oman as pipeline attacks push prices lower
Oil prices dropped on Wednesday after Saudi Arabia began sending additional crude shipments via Oman following attacks on its East-West pipeline, while U.S. crude inventories fell less than analysts expected.
Global oil markets saw a decline on September 16 as Saudi Arabia responded to recent attacks on its East-West pipeline by increasing crude cargoes routed through Oman’s Sohar port, using ship-to-ship transfers to reach Asian refiners. The additional supply eased concerns that the disruption could be larger, prompting Brent to close $2.92 lower at $105.83 and U.S. WTI to fall $3.40 to $102.43. The pipeline strikes had halted loadings at the Red Sea hub in Yanbu, Saudi Arabia’s primary export outlet after the Strait of Hormuz blockade.
At the same time, U.S. crude inventories shrank by roughly 640,000 barrels, well under the 1.62 million-barrel draw expected by analysts, while gasoline and diesel stocks rose, keeping refined-product markets tight. Diesel prices remain a top worry as Middle-East tensions rise and Russian export restrictions persist. The combined supply-side developments and inventory data contributed to the price drop despite ongoing regional volatility.
Why it matters
The shift in Saudi oil routing and weaker U.S. inventory draws influence global fuel prices and supply stability.
How this story developed
- Aug 23 Iran readies major fuel price hike amid US sanctions and war pressures
- Sep 7 Brent crude climbed to about $97 a barrel as US‑Iran clashes intensified, and analysts said gasoline prices may ease in October with the shift to winter‑grade fuel.
- Sep 8 The US military said it destroyed five Iranian oil tankers in retaliation for two missile strikes on a US warship over two days.
- Sep 9 Iran launched a missile strike on a Jordanian military base.
- Sep 9 US military says it destroyed five Iranian crude oil carriers following IRGC ballistic missile attacks on a US Navy warship.
- Sep 9 Brent futures rose above $100 a barrel on Wednesday, driven by escalating attacks in the Middle East that have tightened oil supplies.
- Sep 9 Iran said its forces also engaged two US vessels and eight oil tankers in the Strait of Hormuz.
- Sep 10 Brent crude rose above $105 per barrel.
- Sep 11 Diesel fuel in the United States has risen past $6 per gallon, a sharp increase linked to recent military actions involving the U.S., Israel and Iran.
- Sep 11 Diesel prices crossed $6 per gallon for the first time.
- Sep 12 Iran announced attacks on ten vessels near the Strait of Hormuz.
- Sep 13 A ship was hit by a projectile while transiting the Strait of Hormuz, prompting crew evacuation after a fire broke out, according to UKMTO.
- Sep 14 Saudi Arabia temporarily closed its east‑west pipeline after a drone strike traced to Iraq, while an Iranian commercial vessel reported casualties nearby.
- Sep 14 Brent futures rose to $109.97, a three‑month peak, widening the price gap with regional benchmarks.
In this story
Related stories
34 in this thread