Brent crude falls below $104 on Saudi pipeline hopes

The retreat matters because oil has been one of the biggest macro wild cards for inflation, central banks and risk assets. A sustained move above $100 can feed into transport, power and industrial costs, while a pullback eases pressure on consumers and reduces the urgency of more aggressive policy tightening.

The latest decline followed reports that Saudi Aramco is working to restore about half of the capacity of a pipeline that was hit in recent attacks. Traders also drew comfort from reports that Saudi Arabia offered additional crude cargoes through Oman, softening immediate concern that supplies would remain tight.

The selloff comes after a sharp run-up driven by fears over disruptions to key shipping and pipeline routes in the Middle East, including the Strait of Hormuz, the East-West pipeline and traffic through the Red Sea and Bab el-Mandeb. Those routes are critical to moving millions of barrels a day to Asia and Europe, so any sign of restored flow can quickly knock risk premium out of prices.

For investors, the drop is a near-term relief for airlines, refiners and broader equity markets, while pressuring energy producers and oil-linked exchange-traded funds that have benefited from the surge. It also highlights how headline risk in the Gulf can continue to drive sharp intraday moves even when the underlying supply disruption proves less severe than first feared.

Oil traders are likely to stay focused on Saudi export logistics, the pace of pipeline repairs and whether geopolitical tensions in the region ease further or flare again, keeping crude volatility elevated in the days ahead.