Oil prices fall in early trade, extending the previous day’s losses, as reports of Saudi Arabia offering extra crude cargoes through Oman reduced fears of supply disruptions in the Middle East, according to Reuters.
Brent crude futures drop $1.24, or 1.2 per cent, to $104.59 a barrel by 0049 GMT, while US West Texas Intermediate futures down $1.14, or 1.1pc, at $101.29. Both contracts fell about $3 on Wednesday.
“Concerns over supply tightness eased slightly following news that Saudi Arabia would ship cargo via Oman,” says Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities.
“Expectations of progress toward easing tensions in the Middle East ahead of US-China summit next week are also capping price gains,” he adds.
