Oil Prices Fall Amid Middle East Supply Disruptions

Oil prices settled about 1% lower on Thursday, but stayed above $100 a barrel, as investors weighed the disruption from strikes by Saudi Arabia and Yemen's Iran-backed Houthis against reports that additional Saudi crude barrels could reach global markets.

Saudi Arabia and Yemen exchanged fresh strikes across their border on Thursday, threatening to worsen the global energy supply shortage caused since the US and Israel attacked Iran in February.

Brent crude futures closed down $1.01, or 0.95%, at $104.82 a barrel, while US West Texas Intermediate futures fell 52 cents, or 0.5%, to $101.91 a barrel.

Saudi Arabia was seeking to return about half the capacity of its East-West oil pipeline within days after the link was halted last week following drone attacks, Bloomberg reported.