Oil slides below $106 on easing supply concerns

Oil prices extended their decline on Thursday, with Brent crude futures down 2.14% at $105.77 per barrel according to Mettis Global data. The fall came as worries about possible supply shortages eased after Saudi Arabia began lining up replacement crude shipments following attacks on its East-West pipeline.

Reuters reported that Saudi Arabia is supplying extra cargoes to Asian buyers via ship-to-ship transfers off Oman's Sohar port, which partly offsets the effect of the pipeline attacks. U.S. Energy Secretary Chris Wright said on Tuesday that the disruption was short-lived and temporary, with only a few days expected before normal flows resume.

Earlier this week, Saudi Arabia halted loadings at its Red Sea terminal in Yanbu and cancelled some European shipments. Yanbu has become a major route since Iran began restricting the Strait of Hormuz after US and Israeli strikes in late February, according to the report. Peter Massabni of XS.com said Saudi efforts to secure other export routes had reassured markets that some disrupted crude could return, though he added the outlook still hinges on Middle East developments.