Oil Prices Dip Amid Alternative Supply Routes and Pipeline Repairs
Oil prices have been on a downward trend for three consecutive sessions, but remain above $100 per barrel. The Brent crude futures fell by $1.01 to $103.77 per barrel, while US West Texas Intermediate futures dropped by $1.03 to $100.88 per barrel.
The decline in oil prices is attributed to the hopes of alternative ways for barrels from the Middle East to reach markets. Despite concerns about strikes between Saudi Arabia and Yemen's Houthis, markets have largely shrugged off these threats.
Saudi Arabia had suspended crude loadings at its Red Sea export hub of Yanbu and cancelled some deliveries to Europe due to an attack on its East-West pipeline last week. However, Bloomberg reported that the country is seeking to return about half the capacity of the pipeline within days.
US Energy Secretary Chris Wright has stated that crude should be flowing through the pipeline within days. Iran's Revolutionary Guards Navy also struck a Togo-flagged oil tanker while attempting to make an 'illegal passage' through the Strait of Hormuz on Thursday.