Oil prices fell sharply on Thursday as developments involving alternative export routes and prospects for restoring disrupted infrastructure reduced concerns about an immediate supply shortage in the Middle East.
As of 2:20 p.m., international benchmark Brent crude traded at $102.30 per barrel, down $3.55, or 3.35%, while US benchmark West Texas Intermediate (WTI) stood at $99.97 per barrel, declining $2.46, or 2.40%.
The price decline followed developments that offered potential alternatives for maintaining energy exports and restoring infrastructure affected by disruptions in the region. These developments eased immediate supply shortage concerns and contributed to selling pressure across crude markets.
The latest losses extended the previous session's decline, when Brent fell 2.7% and WTI dropped 3.2%, as traders continued to reassess the potential impact of supply disruptions on global oil availability.
However, the possibility of alternative export routes and infrastructure restoration has not eliminated broader risks to energy supplies. Uncertainty surrounding Middle Eastern shipments continues to influence market movements and contribute to volatility.
The Strait of Hormuz remains a critical risk point for international energy markets because of its role in transporting crude oil and liquefied natural gas. Disruptions to shipping through the waterway could affect global supply flows and pricing.
Meanwhile, attacks on Russian refinery infrastructure linked to the Russia-Ukraine conflict continue to place pressure on refined petroleum product markets. The disruptions add to existing concerns about the resilience of global fuel supply chains.
Despite Thursday's decline, developments affecting Middle Eastern exports, infrastructure recovery, and Russian refining capacity remain important factors shaping oil market expectations.