[International Oil Prices] Fall on News of "Saudi Arabia Transshipping Oil Offshore Oman"

[Financial News]  

International oil prices fell for a second straight session on the 17th (local time), as concerns over a decline in Saudi Arabia's oil exports eased.
Brent crude for November delivery, the benchmark for international oil prices, settled at $104.82 per barrel, down 0.95% from the previous session.
West Texas Intermediate (WTI) crude for October delivery, the U.S. oil-price benchmark, ended the session at $101.91 per barrel, down 0.51%.
However, both grades were still up more than 18% for September as a whole.
The day's decline in oil prices followed reports that Saudi Arabia was seeking to export oil via Oman while bypassing the East–West Crude Oil Pipeline.
Reuters reported, citing sources, that Saudi Arabia had agreed to supply additional crude to Asian refiners through ship-to-ship transfers offshore near Sohar Port in Oman.
Under the arrangement, small and medium-sized shuttle tankers would carry crude to the Strait of Hormuz and transfer it to tankers waiting offshore outside the strait. This would allow very large crude carriers (VLCCs) bound for Asia to avoid entering the Persian Gulf directly, while also avoiding hefty war-risk insurance premiums. Although the arrangement cannot completely eliminate the risk of Iranian attacks, it is expected to minimize the danger.

[email protected] Song Kyung-jae Reporter