Oil Nears $108 As Saudi Arabia Plans Additional Crude Shipments Via Oman
Mian Nadeem Published September 16, 2026 | 04:24 PM
Global oil supplies have been affected by tensions in the Strait of Hormuz, while Saudi Arabia’s recent move has led to a slight decline in market prices.
Global Oil Prices
Crude oil prices in the global market are approaching $108 per barrel. According to the Associated Press:
- Brent crude fell 83 cents to $107.92 per barrel.
- U.S. West Texas Intermediate crude declined $1.41 to $104.42 per barrel.
Saudi Arabia's Offer
Saudi Arabia has offered to transport additional crude oil through Oman, an alternative route near the Strait of Hormuz, to boost global oil supplies amid ongoing tensions in the region.
This development comes as commercial vessel traffic through the Strait of Hormuz has significantly dropped below normal levels, raising concerns about global crude oil and energy product supplies.
Saudi Arabia's move is seen as an effort to ease supply pressures in the global market, although oil prices are expected to remain volatile until regional tensions subside.
Inventory and Market Dynamics
An increase in U.S. oil inventories has helped mitigate some pressure on global prices. However, analysts suggest uncertainty could persist until normalcy returns to the Middle East.
The rise in global oil prices has significant implications for Pakistan, as higher international prices could increase the import cost of petroleum products, strain foreign exchange expenditure, and put pressure on the national economy.
Local petrol prices are determined by a complex interplay of global product prices, the rupee's value against the dollar, taxes, the petroleum levy, freight, and other costs, rather than directly correlating with international crude oil prices.
Market focus is currently on maritime traffic through the Strait of Hormuz and Saudi Arabia’s alternative supply arrangements, which could significantly impact oil prices in the coming days.