West Texas Intermediate (WTI) Oil prices declined for the second consecutive day on Thursday, trading just below $97 after reaching four-month highs above $102 earlier in the week. The price is approaching the lower end of the weekly trading range near $96, reflecting a pullback from recent peaks [1]. This decline follows news that Saudi Arabia has established an alternative export route through Oman to supply crude to Asian markets. This development has alleviated some concerns about supply disruptions caused by recent attacks on the East-West pipeline, which previously transported Saudi oil to the Yanbu port in the Red Sea as an alternative to the blocked Strait of Hormuz [1].
Saudi authorities announced on Wednesday a plan to restore the critical pipeline, aiming to return to 40% of its capacity within days and to achieve full operational status within six weeks [1]. In the United States, the Energy Information Administration reported that crude inventories declined by 640,000 barrels last week, which was less than half the anticipated 1.6 million barrel drop. Additionally, gasoline and distillate stocks increased compared to the previous week, further easing supply concerns [1].
Geopolitical uncertainty persists due to ongoing tensions between the US and Iran. US President Donald Trump stated that the US is 'hopefully towards the end' of the war and claimed that Iran is seeking direct talks, a claim denied by Tehran authorities. This uncertainty is preventing crude prices from falling further below the key $100 level [1].
CONCLUSION
WTI Oil prices have retreated from recent highs as Saudi Arabia's alternative export route and plans to restore pipeline capacity ease supply concerns. US inventory data and ongoing geopolitical uncertainty are also influencing market sentiment. The market remains cautious, with prices supported near the $100 level amid unresolved tensions in the Middle East.