Middle East Tensions Offset by Saudi Oil Restart

The price of Brent crude oil has declined by $1.15 per barrel to trade at $99.48 per barrel in early trading on Friday. This drop comes despite rising tensions in the Middle East, which initially caused oil prices to increase.

According to Daniel Hynes, senior commodity strategist at ANZ Bank, 'Crude oil gained as tensions rose in the Middle East.'

The development of heightened security concerns was due to Washington's decision to send a third aircraft carrier and an additional marine expeditionary unit of up to 10,000 troops to the region. However, this upward pressure on prices has been countered by reports that Saudi Arabia has resumed crude oil loadings at its Red Sea terminal of Yanbu.

Saudi Arabia had halted tanker loadings from Yanbu following a drone attack on the East-West Pipeline last month. The restarting of operations on this pipeline and resumption of loadings have eased supply concerns, causing oil prices to edge lower in early trading.