Oil slides as Saudi Arabia boosts flows via key pipeline

Riyadh: Oil fell as top exporter Saudi Arabia boosted flows through a key pipeline, overshadowing concerns over a stalemate between the US and Iran.

Brent futures slid towards $103 a barrel. Saudi Arabia was said to have restored about half the capacity of its East-West pipeline, a crucial route that bypasses the Strait of Hormuz and has provided a lifeline to global markets as the world's most important energy chokepoint has been disrupted by the Middle East conflict.

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A steady flow of crude also appears to be making its way out of the Persian Gulf through Hormuz on vessels transiting covertly, despite ongoing risks to shipping. The flows are helping ease concerns that a deal to reopen the waterway remains elusive.

While the nearest Brent contract remains in triple digits, it is just a day away from expiry on Wednesday, while the more active December futures traded near $96. West Texas Intermediate crude slid towards $90. The retreat follows a month in which markets for physical barrels were thrown into upheaval, with key gauges signalling a scramble for immediate delivery as freight costs soared and fuel prices surged amid constrained global refinery capacity.

"Geopolitical risks remain unresolved but crude is flowing through the strait and through Saudi's western port," said Ole Hansen, head of commodity strategy at Saxo Bank.