Brent Halts Rally Amid Hopes of Iran Conflict Talks

Brent crude fell toward $102 a barrel on Thursday, following a 2.7% drop in the previous session, reflecting easing concerns over supply disruptions after Saudi Arabia indicated it could restore around half of the damaged East-West pipeline’s capacity within days and full operations within six weeks. Riyadh is also offering additional crude cargoes to Asian refiners through ship-to-ship transfers near Oman, providing an alternative export route after disruptions at the Yanbu terminal. The developments have reduced immediate fears of a severe supply shortage, but the market remains sensitive to further escalation in the Middle East. The Strait of Hormuz remains contested and continues to be a critical supply route, while the Russia-Ukraine conflict is also disrupting refined-product markets through attacks on Russian refineries.

Brent crude fell toward $104 per barrel on Thursday, sliding for the second straight session following reports that Saudi Arabia plans to restore roughly half the capacity of its East-West pipeline within days and bring it back to full operation within six weeks. The key pipeline, which provides an alternative route around the Strait of Hormuz, was damaged in drone attacks last week. In the meantime, Saudi Arabia has stepped up efforts to transport more crude through Hormuz with assistance from the US military. Meanwhile, US Energy Secretary Chris Wright said that 18 million barrels of crude and petroleum products passed through Hormuz earlier this week. In the US, official data showed that crude inventories declined by 640,000 barrels to 423.4 million barrels, although the decrease was smaller than analysts had anticipated. The figures differed sharply from the API’s earlier estimate of a 7.1 million-barrel increase in crude inventories.

Brent crude fell to around $106 a barrel on Wednesday, extending its retreat after two sessions of gains as markets assessed the potential recovery of Saudi Arabia’s key East-West pipeline. Saudi Aramco is reportedly working to bypass a damaged section of the route, aiming to restore around half of its capacity within days and return the pipeline to full operation in roughly six weeks. US Energy Secretary Chris Wright also said the outage should be resolved within days, although independent analysts expect repairs could take longer. In the meantime, Saudi Arabia increased efforts to move more crude through the Strait of Hormuz with US military assistance. Separately, US government data showed crude inventories fell by 640,000 barrels to 423.4 million barrels, although the decline was smaller than analysts had expected. Stocks at the Cushing, Oklahoma, hub also decreased. The data contrasted sharply with the API’s previous estimate of a 7.1 million-barrel increase in crude inventories.