Oil Slips to $103.87 as Saudi Pipeline Repairs Begin
Brent crude fell 0.9% to $103.87 as Aramco restores key routes, yet supply remains tight.
Key points
- Brent crude settled at $103.87, down 0.9%, while WTI fell 1.6% to $100.30.
- Aramco aims to fully restore its East-West pipeline within six weeks after recent attacks.
- Bullish positions on Brent and WTI rose to 429,413 contracts, the highest since May.
Brent crude settled at $103.87 a barrel, marking a fourth consecutive daily decline. The drop reflects fading fears of a lasting supply shock in the Middle East region.
West Texas Intermediate fell 1.6% to $100.30 during the same session. Analysts note that the physical market remains tight despite this price retreat.
Pipeline repairs ease supply concerns
Aramco expects to partially restore its East-West pipeline within days. Full capacity could return within six weeks following recent attacks linked to the Iran conflict.
The pipeline moves up to 7 million barrels daily, bypassing the Strait of Hormuz. Saudi Arabia is also lifting exports from terminals outside the strait to ease shortages.
European refiners face temporary curbs
Saudi Arabia has halted some shipments to European refiners temporarily. Aramco reportedly warned two clients that no crude will be available next month.
This squeeze is visible in North Sea and Mediterranean grade differentials. Prices for these grades have risen sharply as traders assess the real impact.
Speculators increase bullish positions
Combined bullish bets on Brent and WTI rose by 18,254 contracts. The total reached 429,413 contracts in the week ending September 15.
This marks the most optimistic positioning since late May, according to data via yahoo.com. Traders want firm proof that lost barrels are flowing again before turning bearish.
