Oil Prices Drop Over 1.5% as Saudi Arabia Restarts Red Sea Loadings

Oil prices fell sharply in Tuesday morning trading as the restart of a key Saudi Arabian export route eased global supply concerns. West Texas Intermediate (WTI) crude was down $1.47, or 1.59%, to trade at $91.13 per barrel, according to live price data. The international benchmark Brent crude declined $1.42 (-1.45%) to $96.41.

The price decline follows news that Saudi Arabia has restarted crude oil loadings at the Yanbu port on the Red Sea. According to a report from OilPrice.com, the resumption came after the East-West pipeline resumed partial service. The pipeline, which helps Saudi Arabia bypass the Strait of Hormuz, had been shut down for two weeks following drone attacks on pumping stations on September 10.

The restart is increasing global oil supply. Satellite imagery from Sunday showed Saudi Arabia loading nearly 10 million barrels of crude oil at Yanbu and the Al Muajjiz terminal, according to TankerTrackers.com cited in the report. Crude oil loadings at Yanbu have been around 2 million barrels per day since last week, according to trade source estimates.

For Bakken operators, the price drop directly impacts the realized price for their crude. The Bakken differential—the discount at which Bakken crude trades versus WTI at the Cushing, Oklahoma hub—was holding at -$3.42 on Tuesday morning. This means Bakken crude is priced at approximately $87.71 per barrel, factoring in the wider market decline.

The easing of the supply disruption from Saudi Arabia is a primary driver behind Tuesday's price pressure. Before the restart, the outage had contributed to a tighter global market and supported higher prices. The report notes that full resumption of the pipeline's flows, which can reach about 4 million barrels per day, will likely take weeks. However, the immediate return of Red Sea loadings is a bearish signal for the market.

The development underscores the continued sensitivity of global oil prices to geopolitical events and supply logistics in key producing regions. While the situation in the Middle East remains fluid with continued Houthi threats to shipping, the immediate restart of this critical export route has provided relief to physical markets.

For North Dakota producers, the dip in the overall benchmark price narrows revenue margins. Operators will watch whether the downward move is sustained or if other factors, such as U.S. inventory levels or broader OPEC+ policy, provide renewed support. The stable Bakken differential suggests regional pipeline and rail logistics are functioning normally, with the local price moving in lockstep with the national benchmark's decline.