Brent Drops Below $105 as Saudi Arabia Reroutes Crude Flows

Crude oil pulled back below the $105 mark after Saudi Aramco confirmed it is re-orienting nearly all crude loadings through the Persian Gulf, moving roughly 60 million barrels following damage to its East-West pipeline. Markets read the pivot as a sign supply disruption may be contained, easing the panic that gripped prices last week.

However, the rerouting comes at Europe's expense. At least two European term refiners have been told they'll receive zero Saudi crude allocations in October, a decision reportedly applying across all European term buyers. Flows through Ras Tanura still carry exposure to potential Iranian drone strikes in the Strait, keeping a geopolitical premium embedded in prices.

Traders should watch whether Gulf-based supply substitution can offset the European shortfall without reigniting the earlier price spike.