Crude falls to $103 as Middle East risks ease

On Thursday, oil prices slid by nearly two percent to their lowest point in a week as worries about potential disruptions in Middle East crude supplies diminished. Brent crude futures dropped by $2.67, or 2.5%, to $103.13 a barrel, a decrease from $105 the previous day, according to Reuters data. US West Texas Intermediate crude also fell by $1.61, or 1.6%, to $100.82 per barrel.

Brent crude prices surged to a peak of $109 earlier in the week, but the Dangote Petroleum Refinery increased petrol prices in response to the oil price hike. Reports emerged that Saudi Arabia was offering extra crude shipments to Asian refiners via ship-to-ship transfers near Oman's Sohar port. This move aimed to counteract the effects of attacks on Saudi Arabia's East-West oil pipeline, which delivers crude to the Red Sea export facility in Yanbu.

The pipeline, which feeds the Yanbu terminal, was damaged by attacks last week, with three pumping stations affected. However, the pace of repairs remained uncertain, as stated by assessments from three oil and security sources. US Energy Secretary Chris Wright had previously signaled that the pipeline could return to operation within days, alleviating concerns over a prolonged supply disruption.

Meanwhile, the Dangote Refinery is offering its IPO through POS in 2027. In other political news, Saudi Arabia has declined Nigeria's request for additional Hajj slots, while the government reviews a 1978 air service agreement to secure more Hajj slots for Nigerian airlines.