Crude Oil Hits $100

Crude oil fell to around $102 per barrel on Thursday, extending losses for a second consecutive 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.

Crude oil fell below $103 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.

Crude oil fell to around $104 a barrel on Wednesday, retreating after two consecutive sessions of gains as signs of rising US inventories weighed on the market. The American Petroleum Institute reported a 7.1 million-barrel increase in US crude stockpiles last week, alongside higher gasoline and distillate inventories, with official government data due later in the day. Supply concerns nevertheless remain elevated. Saudi Arabia’s East-West pipeline remains offline, although US Energy Secretary Chris Wright said the outage should last only a matter of days. Iran-backed Houthi militants are advancing towards the Bab el-Mandeb Strait while intensifying attacks on Saudi targets and regional shipping routes. The disruption has reportedly prompted Saudi Aramco to delay some deliveries to European customers, increasing competition for alternative supplies. Libya also experienced a supply halt.