Oil Prices Retreat as Middle East Supply Disruption Concerns Ease

Oil prices settled around 1% lower on Thursday, but remained 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 and ease supply concerns.

Saudi Arabia and Yemen exchanged fresh strikes across their border on Thursday, with the spread of the Middle East war to Yemen and Saudi Arabia threatening to worsen the global energy supply shortage since the United States 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, both benchmarks having fallen about 3% on Wednesday.

The East-West pipeline supplies Yanbu, Saudi Arabia's Red Sea export hub, and its prolonged closure could cut off as much as 4% of global oil supply, according to traders.