Oil prices declined on Wednesday after reports that Saudi Arabia was offering additional crude cargoes through Oman eased concerns over the extent of supply disruptions in the Middle East, while European diesel prices remained close to record highs.

Brent crude futures fell $1.30, or 1.2 per cent, to $107.45 a barrel by 1307 GMT. US West Texas Intermediate futures dropped $1.96, or 1.85 per cent, to $103.87 a barrel.

The decline came after oil prices surged by more than $3 in the previous session following reports that crude loadings at Saudi Arabia’s Red Sea export hub in Yanbu had been suspended.

Saudi Arabia had also cancelled some crude cargo deliveries to European customers, raising concerns that disruptions to a key export route could last for several weeks.

However, people familiar with the matter said Saudi Arabia was offering additional crude loadings to Asian refiners through ship-to-ship transfers off Oman’s Sohar port, according to Reuters.

The move followed drone attacks that damaged Saudi Arabia’s oil pipeline to the Red Sea, prompting the kingdom to explore alternative routes for crude exports.

Visible vessel traffic through the Strait of Hormuz remained in the single digits on Tuesday, with just four vessels recorded, down from seven a day earlier, according to preliminary shipping data released on Wednesday.

The figure was significantly below the 10-day average of 18 vessels, highlighting the continued disruption to shipping activity through the strategic waterway.

Before the US-Israeli war with Iran began in late February, the Strait of Hormuz carried about one-fifth of global oil and liquefied natural gas supplies.