Oil Prices Slide as Saudi Supply Logistics Stabilize

By 11:45 a.m. ET, November ICE Brent crude dropped $1.98 to $103.85 per barrel, while October West Texas Intermediate fell $1.45 to $100.98. The decline extended to refined products, with October ULSD down 14.73 cents to $5.0989 per gallon and October RBOB slipping to $3.4715.

Broader economic pressures compounded the downward trend. The Federal Reserve’s decision to raise interest rates by a quarter-point on Wednesday spurred concerns over tighter financial conditions and slowing energy demand. Domestic inventory data from the Energy Information Administration showed a modest draw of 640,000 barrels in crude stocks, though this was countered by builds in gasoline and distillate supplies.

While shipments through the Strait of Hormuz remain significantly suppressed—averaging just 47 vessels per week since late February compared to 456 previously—analysts at J.P. Morgan suggest that Saudi Arabia’s ability to utilize alternative export routes and existing crude stockpiles provides a sufficient buffer against potential pipeline disruptions.