Oil Prices Rally on Saudi Supply Concerns, Middle East Tensions
Oil prices pared losses on Friday as markets reassessed Saudi supply concerns and Middle East tensions.
The Brent crude futures price fell by 33 cents, or 0.31 percent, to $104.49 a barrel by 1411 GMT, while US West Texas Intermediate futures gained 88 cents or 0.86 percent to $102.79.
A key factor supporting oil prices is ongoing tensions in the Middle East, with UBS energy analyst Giovanni Staunovo saying 'Oil prices are being supported by ongoing tensions in the Middle East, with tankers being targeted in the Strait.'
The Saudi East-West pipeline was damaged in an attack last week, with a repair timeline unclear. Saudi Aramco told at least two European refining customers they will receive no crude oil next month following the attack on the key pipeline to the Red Sea.
However, reports that Saudi Arabia is seeking to restore about half the capacity of its East-West oil pipeline within days have cooled prices.