Oil Prices Extend Decline as Hopes Grow for Saudi Supply Recovery

PUKMEDIA

Oil field.

Oil prices fell for a third consecutive day on Friday, as easing concerns over disruptions to Saudi supplies outweighed fears of an expanding Middle East conflict following renewed fighting between Saudi Arabia and Yemen’s Houthi movement.

According to Reuters, Brent crude futures fell 79 cents, or 0.75%, to $104 a barrel by 0319 GMT, while US West Texas Intermediate (WTI) crude futures declined 70 cents, or 0.69%, to $101.20 a barrel. Both benchmarks closed around 1% lower on Thursday.

Brent crude is on course for its first weekly decline in three weeks, down 0.5% so far this week, while WTI is set to post a weekly gain of 1.2%.

Markets largely shrugged off renewed concerns over oil supplies after Saudi Arabia and Iran-backed Houthi forces exchanged fresh strikes across their border on Thursday, further widening the conflict in the region.

Oil prices had risen earlier this week to near four-month highs after sources said crude loadings at Saudi Arabia’s Red Sea export hub of Yanbu had been suspended. Riyadh also cancelled some deliveries to Europe after its East-West oil pipeline was damaged in an attack last week.

However, prices have since eased following reports that Saudi Arabia was seeking to restore around half of the East-West pipeline’s capacity within days. The kingdom was also reportedly offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman’s port of Sohar.



PUKMEDIA