Oil Prices Plummet on Eased Saudi Supply Disruption Fears

Oil prices are set to decline for the week due to eased concerns over Saudi supply disruptions. Brent crude futures have dropped by $1.65, or 1.6%, to $103.17 a barrel as of 1008 GMT. U.S. West Texas Intermediate futures are down 61 cents, or 0.6%, at $101.30.

The easing of supply tightness is attributed to Saudi Arabia loading more crude via Oman and increased fuel exports from China. Oil product inventories have also seen a build in the U.S., Singapore, and Europe. PVM Oil Associates analyst Tamas Varga notes that 'while continuous pre-weekend profit-taking cannot be ruled out, the current fundamental outlook would not justify a prolonged fall below $100 (a barrel) basis Brent.'

Market anxiety over Saudi supply disruptions has cooled since reports emerged that Riyadh was seeking to restore about half the capacity of its East-West oil pipeline within days. The pipeline had been damaged in an attack last week, leading to concerns over crude flows.