Oil Prices Fall Amid Hopes for Limited Supply Disruptions

Oil prices fell by about 1% on Friday, extending losses for a third session, as hopes of alternate ways to transport barrels from the Middle East outweighed concerns about strikes between Saudi Arabia and Yemen's Houthis. Brent crude futures dropped $1.01, or 1%, to $103.77 a barrel, while US West Texas Intermediate futures fell $1.03, or 1%, to $100.88 a barrel.

The market largely shrugged off concerns about new threats to supplies despite Saudi Arabia and Yemen's Iran-backed Houthis exchanging fresh strikes across their border on Thursday. This expansion of the Middle East war front had earlier driven oil prices to around four-month highs this week.

Sources have given varying estimates of how long it will take to reopen the damaged pipeline and return crude flows to normal. The closure could cut off as much as 4% of global oil supply, according to traders. Saudi Arabia is seeking to return about half the capacity of its East-West oil pipeline within days.