Eco
Oil prices recorded a notable decline today, Thursday, continuing their fall from the previous session. This was driven by reports that lessened concerns regarding potential supply disruptions from the Middle East, following a period of intense global market volatility. By 00:49 GMT, Brent crude futures fell $1.24 to $104.59 per barrel, while U.S. West Texas Intermediate (WTI) crude futures dropped $1.14 to $101.29. Both contracts had fallen by approximately $3 on Wednesday. Saudi Aramco is working to restore the operational capacity of its 1,200-kilometer "East-West" pipeline. The company targets restoring about half its capacity within days, and full capacity within approximately six weeks. This vital pipeline previously transported 4 to 5 million barrels daily before its precautionary halt following an attack, representing 4% to 5% of global oil supplies. The successful partial re-commissioning of the pipeline in the coming days should alleviate short-term supply risks. This could also pressure Brent crude prices, which had risen sharply due to supply disruptions. Hiroki Kikukawa, Chief Analyst at Nissan Securities Investment, noted that fears of supply tightness have receded. Expectations of progress towards de-escalating Middle East tensions before the U.S.-China summit next week also limit price gains. Despite today's oil price decline, following prices reaching nearly four-month highs earlier in the week, concerns about escalating Middle East conflicts persist. Meanwhile, U.S. government data from Wednesday showed crude inventories decreased less than anticipated, falling approximately 640,000 barrels against analysts' forecasts of a 1.62 million barrel reduction.
