Oil Prices Drop as Saudi Supply Disruptions Ease
Oil prices fell by 2% on Friday, extending losses for the third straight session. The decline was attributed to easing concerns over Saudi supply disruptions, which outweighed anxiety about a widening conflict in the Middle East.
Brent crude fell by $2.14, or 2%, to $102.68 a barrel, while WTI crude dropped $1.83, or 1.8%, to $100.08. The benchmark Brent price is on track for its first weekly loss in three weeks.
PVM Oil Associates analyst Tamas Varga stated that immediate concerns over supply tightness have been eased by a combination of factors, including Saudi Arabia loading more crude via Oman and increased fuel exports from China.
Despite reports of Saudi Arabia's efforts to restore its East-West oil pipeline within days, markets remain cautious due to the ongoing conflict in the Middle East. Iranian state media reported that an Iranian Revolutionary Guards Navy vessel struck a Togo-flagged oil tanker while attempting to make 'illegal passage' through the Strait of Hormuz.