Oil prices dropped in Asian trade extending losses as Saudi Arabia offered extra crude cargoes through Oman reducing fear of supply disruptions in the Middle East. According to people familiar in the matter, Saudi Arabia is offering more loadings of crude oil to Asian refiners via ship-to-ship transfers off Oman’s Sohar port.
Despite the alternative, the benchmark Brent crude futures stood above $100 per barrel. However, a plunged of $3 is recorded against prices on Wednesday.
Brent crude futures dropped $1.24, or 1.2 percent, to $104.59 a barrel as of 00:49 GMT, while US West Texas Intermediate (WTI) futures were down $1.14, or 1.1 percent, at $101.29.
According to preliminary ship tracking data as of Thursday, only 3 commodity vessels passed through the Strait of Hormuz on Wednesday down from 12 a day earlier.
On Wednesday, US Navy Captain Tim Hawkins, a spokesperson for US Central Command (CENTCOM), said traffic through the strait “continues to flow” while rejecting the suggestion that Iran controls the waterway.
Meanwhile, South Korean president prior to his departure to the US revealed that the country is yet to decide on its military deployment at the critical waterways. US President Donald Trump has pressured South Korea to support the country in its war on Iran, threatening to scale back joint military drills in August.
Our position remains that no decision has been made yet, and we are reviewing all relevant factors,” Cho was quoted as saying.“In doing so, we will prioritise international cooperation while giving foremost consideration to the safety of our people and freedom of navigation through the Strait of Hormuz.”
The remarks came after a reporters dropped a question on the country’s stance on military deployment at the Strait.