Oil Prices Dip on Hopes of Limited Supply Disruptions

Oil prices fell by about 1% on Friday, extending losses for the third consecutive session. Despite concerns about supply disruptions due to strikes between Saudi Arabia and Yemen's Houthi rebels, markets remained hopeful that alternate routes for oil barrels from the Middle East could mitigate the impact.

The Brent crude futures price dropped $1.01, or 1%, to $103.77 a barrel by 0020 GMT, while US West Texas Intermediate futures fell $1.03, or 1%, to $100.88 a barrel. Both benchmarks had closed down about 1% on Thursday.

The Saudi Arabia-Yemen conflict has raised concerns about supply disruptions, but market analysts say that hopes of returning oil flows to normal and alternative routes for oil barrels from the Middle East are keeping prices in check. Bloomberg reported that Saudi Arabia is seeking to return half the capacity of its East-West pipeline within days after it was damaged in a drone attack last week.

Saudi Arabia is also offering more crude cargoes to Asian refiners through ship-to-ship transfers off Oman's Sohar port, which could help offset some of the disruption caused by the attacks on the East-West pipeline. US Energy Secretary Chris Wright said that crude should be flowing through the pipeline within days.