Saudi Oil Disruptions Eased as Prices Drop Above $100

Oil prices have continued their downward trend as concerns over supply disruptions in Saudi Arabia ease. Brent crude futures were down $1.09, or 1.03 per cent, to $104.74 a barrel at 4:01 a.m. ET, while US West Texas Intermediate futures fell by 83 cents, or 0.81 per cent, to $101.6 a barrel.

The decline comes after reports emerged that Saudi Arabia is offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman's Sohar port. This move has helped alleviate some of the disruption caused by attacks on the East-West pipeline to the Red Sea, which supplies Yanbu.

Saudi Arabia has not yet confirmed when operations will resume at the pipeline, but US Energy Secretary Chris Wright told CNBC that crude should be flowing through it within days. However, concerns about the escalating Middle East conflict remain, with two pumping stations serving the East-West pipeline still damaged from an attack last week.

Despite Thursday's decline in oil prices, they remain above $100 a barrel on fears of further disruptions to global supply. Tightening diesel supplies have also emerged as another source of pressure, with European gasoil futures reaching a record high and U.S. ultra-low sulfur diesel futures following suit.