Oil Prices Slide Below $104 for Third Straight Session

Oil prices continued their downward trend on September 18, falling below $104 for the third straight session. Brent crude futures dropped by 1.04% to $103.70 a barrel, while US West Texas Intermediate futures declined by 0.92% to $101 a barrel.

The market seemed to be largely unaffected by fresh threats to supply, including attacks between Saudi Arabia and Yemen's Iran-backed Houthis across their border. Hopes that alternative routes could help Middle Eastern barrels reach global markets outweighed concerns over the escalating conflict.

Goldman Sachs analysts suggested that oil prices could reach as high as $120 a barrel if attacks on vessels in the Middle East intensify, while exports returning to normal would see prices fall back toward $80 a barrel. Citi has raised its average Brent crude price forecast for the third quarter to $86 a barrel, citing a longer-than-expected timeline for the reopening of the Strait of Hormuz.