Oil Shock Fades? Saudi Arabia Finds a Way to Keep Crude Flowing

Oil prices are sliding as fears of a major supply disruption begin to ease. Brent has fallen back below $100, while WTI is trading near $95, as traders reassess how much crude could actually be lost.

The key development is coming from Saudi Arabia. With its East-West pipeline damaged, the kingdom is finding alternative ways to move crude to Asian buyers, including shipments via Oman. The prospect of keeping exports flowing has eased fears of a prolonged supply shortage and taken some of the war premium out of oil prices.

But the supply risk hasn’t disappeared. Middle East tensions remain high, and any fresh disruption to production or shipping could quickly put supply concerns back at the centre of the market.

Technical Outlook

Brent’s break below the $100 psychological level has weakened the short-term picture. $98 is the first support to watch, followed by the $95 area. On the upside, reclaiming $100 would be the first sign that selling pressure is easing.

WTI is testing the $95 area. A sustained break below this level could expose the next support around $92, while a move back above $96 would improve the short-term setup.

For now, the market is watching how much Saudi Arabia can still get out.