Global crude oil prices fall for a second straight session

Global crude oil prices fell for a second straight session on Thursday as concerns over a major disruption to Middle Eastern supplies eased following reports that Saudi Arabia had proposed additional crude shipments through Oman.

Brent crude futures fell $1.24, or 1.2 per cent, to $104.59 a barrel, while US West Texas Intermediate (WTI) futures dropped $1.14, or 1.1 per cent, to $101.29.

The reported Saudi proposal helped ease investor concerns over potential supply shortages caused by the ongoing conflict in the Middle East. The prospect of additional shipments reduced some of the risk premium that had pushed oil prices higher in recent sessions.

Both benchmarks had already fallen by nearly $3 a barrel on Wednesday (September 16), leaving prices lower for a second consecutive day.

The Middle East remains critical to global energy supplies, making oil markets highly sensitive to developments in the region. Any signs that supply routes can remain operational tend to put downward pressure on prices.

However, uncertainty remains high as the conflict continues. A fresh disruption to production, transportation or export routes could quickly revive upward pressure on crude prices.