Oil Prices Plummet Below $104 as Conflict Concerns Ease

Oil prices continued their downward trend for the third consecutive day, falling below $104 per barrel. The decline was attributed to hopes that alternative routes could help Middle Eastern barrels reach global markets, despite concerns over fresh strikes between Saudi Arabia and Yemen's Houthis.

The conflict in the region has been a major concern for oil markets, with traders looking past the latest threats to supply. Despite this, both Brent crude futures and US West Texas Intermediate futures remained above $100 per barrel, with Brent falling $1.01 (1.04%) to $103.70 and WTI declining $0.94 (0.92%) to $101.

Goldman Sachs has outlined a scenario in which oil prices could reach as high as $120 per barrel if attacks on vessels in the Middle East intensify, while a prolonged shutdown of the pipeline to Yanbu could cut off up to 4% of global oil supply. However, if exports return to normal, the bank expects oil prices to fall back toward $80 per barrel.