Oil Prices Slip as Eased Supply Fears Trump Middle East Tensions
Oil prices declined for a third consecutive day as concerns over Saudi supply disruptions eased, offset by ongoing tensions in the Middle East. Brent crude futures fell by 79 cents or 0.75% to $104 a barrel, while US West Texas Intermediate (WTI) crude futures dropped by 70 cents or 0.69% to $101.20 a barrel.
The market largely ignored threats to supplies despite fresh fighting between Saudi Arabia and Yemen's Iran-backed Houthis across their border. The conflict has expanded the Middle East war front, raising concerns about oil exports through the Red Sea route.
Saudi Arabia had suspended crude loadings at its Yanbu export hub earlier this week due to the damage to its East-West pipeline in an attack last week. However, prices cooled off after reports emerged that Saudi Arabia was seeking to restore half of its East-West pipeline capacity within days and offering more crude cargoes to Asian refiners through ship-to-ship transfers off Oman's port of Sohar.
US President Donald Trump has rebuffed pleas from the Saudis for military support, citing the prospect of political losses for his Republican Party in November's midterm elections partly due to higher energy prices since the US and Israel attacked Iran in February.