Oil slips as Saudi Arabia offers more crude via Oman; diesel near record high

Global oil benchmarks slipped on Wednesday after Saudi Arabia reportedly planned to send extra crude cargoes through Oman, which tempered fears about the extent of regional supply interruptions. According to The Express Tribune, Brent futures lost 1.2% to $107.45 a barrel by 1307 GMT, while US West Texas Intermediate dropped to $103.87. The drop followed a rally of over $3 the day before, when shipping sources reported that loadings at Yanbu had been halted.

Saudi Arabia was reportedly offering more crude to Asian refiners through a transfer between ships off Oman's Sohar port, after drone attacks hit a pipeline linking it to the Red Sea. Vessel transits through the Strait of Hormuz fell to four on Tuesday from seven a day earlier, well under a 10-day average of 18. Macquarie analysts noted that flows through the strait had stayed resilient and that the connection between strait developments and oil flows had loosened.

European gasoil futures, the benchmark for diesel, climbed to a record settlement on Tuesday before easing on Wednesday, pointing to tight fuel markets. Analysts pointed to a product-specific shortage on top of costly crude, while Vedomosti reported that Moscow extended curbs on diesel exports for fuel producers through the end of October. US crude stocks rose by 7.1 million barrels in the week to September 11, against an anticipated decline of roughly 1.6 million barrels, according to API data.