Oil prices drift lower amid cooling M.East supply jitters

Oil prices fell on Thursday, extending recent losses as reports of improving Saudi Arabian supplies and of U.S.-Houthi talks helped cool some concerns over supply disruptions in the Middle East.

A strong dollar also pressured crude after the Federal Reserve hiked interest rates and presented a hawkish outlook.

Brent oil futures fell 0.5% to $105.31 a barrel by 01:38 ET (05:38 GMT), while West Texas Intermediate crude futures fell 0.66% to $101.75 a barrel.

Oil dips as some M.East supply fears ease 

Crude prices lost some steam this week after reports showed Saudi Arabia had begun moving more oil through Oman to avoid disruptions in the Red Sea due to Houthi aggression.

Riyadh was reportedly offering more loadings of crude to Asian refiners through ship-to-ship transfers off Oman’s Sohar port, keeping Middle Eastern supplies flowing despite heightened military tensions.

Separately, Reuters reported the U.S. and Yemen’s Iran-backed Houthis held dialogue over the weekend, where the latter reiterated their commitment to a 2025 ceasefire and said they will not attack U.S. or Israeli ships.

U.S. President Donald Trump on Wednesday evening repeated his claims that Iran was seeking a peace deal and that the U.S. was “hopefully toward the end” of their war.

But Washington and Tehran remained at odds over the Strait of Hormuz, with shipping through the key waterway remaining at a fraction of prewar levels.