WTI Retreats as Saudi Oil Workaround Eases Supply Fears
November WTI crude oil futures were trading at $96.35 at 0:51 GMT early Friday, up $0.49, or 0.51%, for the week. The contract traded as high as $101.69 and as low as $94.64. The range reflects a market caught between broken Saudi infrastructure and an export workaround that only moves part of the lost volume. Saudi Arabia’s East-West pipeline outage drove WTI through $100. The kingdom’s Sohar…
November WTI crude oil futures traded at $96.35 at the beginning of Friday, showing a 0.51% increase for the week. The contract saw a high of $101.69 and a low of $94.64, indicating market uncertainty. The East-West pipeline outage in Saudi Arabia contributed to this volatility, with the kingdom using an export workaround through Sohar, Oman, which kept the panic premium down.
The market now expects a smaller premium, but the supply issues remain. The repair estimates vary from a quick fix to several weeks, creating a range in the contract price. Meanwhile, thin traffic in the Hormuz Strait, despite visible vessel counts, keeps the risk premium alive. Diesel prices, however, did not follow the crude selloff, with European gasoil reaching a record high and U.S. ultra-low sulfur diesel near a record high.
This indicates strong demand for fuel, separate from the crude market. China and the Strategic Petroleum Reserve provide limited relief, as refinery demand exceeds imports and domestic production, leaving them relying on Saudi workarounds. The next crucial factor will be the progress in repairing the Saudi pipeline, which could significantly impact the market.
Written by urgent.news from OilPrice's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
