Saudi Arabia is offering additional Arab Light, Arab Medium, and Arab Heavy crude supplies to Asian refiners through ship-to-ship transfers off Sohar, Oman. This move follows recent pipeline attacks that disrupted standard loading operations.

The supply arrangement aims to mitigate logistical constraints caused by the infrastructure damage. By utilising offshore transfer points near Oman, the kingdom seeks to maintain export flows to key Asian markets despite the disruption.

Reuters reported earlier on the development, citing sources familiar with the matter. The specific volumes or pricing details for these additional cargoes were not disclosed in the initial report.

Brent crude rose 3.0% to $108.86 a barrel while WTI jumped 4.7% to $106.15, as traders weighed supply risks from the Middle East and Russia, with Saudi Arabia's key East-West pipeline remaining offline.

Supply disruptions drive oil price gains

The simultaneous advance in both major crude benchmarks reflects heightened market concern over potential disruptions to global oil supply. Traders pointed to ongoing risks from the Middle East and Russia as key factors, while Saudi Arabia's East-West pipeline — a critical artery for crude transport — remained offline, adding further pressure to supply availability.

Key price movements

The following table summarises the price movements across the two major crude benchmarks:

WTI's sharper percentage gain relative to Brent narrowed the spread between the two benchmarks, a development that traders typically associate with tightening domestic supply conditions alongside broader global risk factors.

Saudi pipeline outage adds to market uncertainty

Saudi Arabia's East-West pipeline, which plays a significant role in moving crude from the kingdom's oil-producing regions to export terminals, remained offline at the time of reporting. The continued outage compounded existing supply concerns linked to geopolitical developments in the Middle East and Russia, contributing to the upward momentum seen across both benchmarks.