Oil Prices Hold Steady Above $100 Amid Saudi Supply Disruptions
Oil prices dipped by about 1% on Saturday but remained above $100 per barrel as investors weighed the impact of supply disruptions caused by strikes in Saudi Arabia and Yemen's Iran-backed Houthi group.
The Brent crude futures traded at $104.82 per barrel after losing $1.01 or 0.95%, while US West Texas Intermediate futures fell to $101.91 a barrel, down 52 cents or 0.5%.
Saudi Arabia's East-West pipeline was damaged in the attack, stopping the flow of around 4-5 million barrels per day across Saudi Arabia to Yanbu, bypassing the Strait of Hormuz. European refineries were particularly affected by this disruption.
Market analysts noted that despite the physical market remaining tight, limiting further price declines. Tanker traffic through the Strait of Hormuz continues to fall, while tensions between Saudi Arabia and the Houthi group keep Red Sea shipping and regional energy infrastructure vulnerable to renewed disruptions.