Brent Retreats to $105.50 From $109.44 Peak as Saudi Aramco Doubles Ras Tanura Loadings and Opens Sohar Route

Brent crude fell to $105.50 per barrel on Wednesday's ICE close, down 2.90% from Tuesday's settlement, as Saudi Aramco demonstrated an alternative route for millions of barrels per day outside the Strait of Hormuz. WTI crude settled at $101.98 per barrel on Wednesday's CME close, down 3.60% on the day, per Trading Economics. Both benchmarks are retreating from levels hit when Saudi Arabia's East-West Pipeline shut on September 11 following drone attacks.

Tuesday's session drove Brent to $109.44 per barrel, the highest ICE settlement in more than two months, after the pipeline closure removed the kingdom's primary non-Hormuz crude export route. Wednesday's $3.94 single-session pullback is the market's verdict on how effectively the Sohar and Ras Tanura alternatives are working. Oil Authority's prior coverage of the East-West Pipeline shutdown documented that $109.44 peak; today's data provides the direct benchmark for what partial supply restoration is worth.

Saudi Aramco Opens Sohar Ship-to-Ship Transfers for Asian Buyers

Saudi Aramco offered Arab Light, Arab Medium, and Arab Heavy grades to Asian term buyers via ship-to-ship transfers off Oman's Sohar port, per Reuters-cited sources reported by the Express Tribune. Sohar sits outside the Strait of Hormuz, so buyers receive full cargo volumes without routing vessels through the contested waterway. At least two VLCCs carrying a combined 4 million barrels of Saudi crude were heading to Sinopec facilities in China, with arrivals expected at Ningbo and Zhanjiang, per Vortexa and Kepler tanker data cited by OilPrice.com.

Aramco opened the Sohar STS arrangement for Arab Medium and Arab Heavy for a second consecutive week, signalling this is a structured contingency rather than a one-time manoeuvre. Saudi Arabia sent 50 to 52 million barrels to Chinese buyers in September, up from 38 million in August, reflecting the priority on maintaining Asia-Pacific supply relationships during the pipeline outage. Additional VLCC capacity can be allocated each week, meaning Sohar volumes will grow if the pipeline restart is delayed.

Ras Tanura Loadings Double: The Capacity Math

Saudi Aramco doubled crude loadings at its Ras Tanura and Juaymah Gulf terminals to 4 million barrels per day, per sources reported by the Express Tribune. Four VLCCs loaded a combined 8 million barrels at Ras Tanura on Wednesday alone. The East-West Pipeline runs 1,200 kilometres from Saudi Arabia's eastern oil fields to the Red Sea port of Yanbu and carried 4 to 5 million barrels per day before the September 11 attack, against a design capacity of 7 million bpd.

Between doubled Gulf terminal loadings at 4 million bpd and growing Sohar STS volumes, Aramco is covering most of what the pipeline had been moving. The net result is a margin gap, not a capacity crisis. Brent's $3.94 decline rather than a sharper correction reflects the market pricing partial supply restoration, not a full resolution.

Saudi Aramco sold a 49% stake in Aramco Oil Pipelines Company to a consortium led by EIG Partners in 2021 for $12.4 billion. That subsidiary holds the East-West Pipeline concession under a long-term lease. Saudi Aramco retains operational control, meaning the pipeline shutdown triggered an immediate multi-terminal response rather than requiring negotiations with a separately managed operator.

API Inventory Draw and European Physical Premiums Limit Downside

Two factors are keeping prices from falling further. The American Petroleum Institute reported a 7.1-million-barrel crude inventory draw for the prior week, a figure FXEmpire described as constructive for prices. European refiners are seeking replacement barrels as Saudi Red Sea shipments remain disrupted, and Norwegian crude grades are commanding unusual spot premiums in the physical market.

Citi expects near-term Hormuz tensions to continue supporting crude prices before a diplomatic path opens for a formal Hormuz reopening in the fourth quarter of 2026. With the API draw signalling tight US stocks, European physical premiums still elevated, and no confirmed pipeline restart timeline, the market remains sensitive to any new Gulf supply headline. Those factors suggest the next directional move depends on whether the next news cycle brings a pipeline repair update or an escalation report.

WTI at $101.98 Weighs on Canadian Oil Sands Netbacks

Canadian heavy oil producers sell their barrels through Western Canadian Select, which trades at a structural discount to WTI. July 2026 monthly average data from the Alberta Economic Dashboard showed WCS at $67.16 per barrel against WTI's $80.46, a $13.30 per barrel discount at a time when WTI was substantially lower than Wednesday's settlement. Suncor Energy, Canadian Natural Resources, and Cenovus are the three largest Canadian oil sands operators. Wednesday's WTI decline erases a portion of the crude revenue gains those producers recorded during last week's pipeline-shock price surge.