Oil Prices Dip Amid Saudi-Yemen Conflict
Oil prices dipped by around 1% on Thursday, settling above $100 per barrel as investors weighed the impact of strikes between Saudi Arabia and Yemen's Houthis against reports that additional Saudi crude barrels could reach global markets.
The conflict has heightened supply concerns, with Brent crude futures closing at $104.82 per barrel and US West Texas Intermediate futures falling to $101.91 per barrel. The East-West pipeline in Saudi Arabia was damaged in an attack last week, potentially cutting off up to 4% of global oil supply.
Saudi Arabia is seeking to restore the pipeline's capacity within days, with Bloomberg reporting that it aims to return about half its original capacity by then. However, traders remain cautious, citing ongoing tensions and disruptions to energy infrastructure in the Middle East and Russia.
Christopher Tahir, senior market strategist at Exness, noted that while concerns over supply disruptions eased slightly, 'the physical market remains tight, limiting the scope for further declines.' Meanwhile, Singapore's DBS Bank predicts that Brent could stabilize in a $85 to $95 per barrel range by the end of the fourth quarter if tensions between the US and Iran ease.