Saudi Supply Fears Ease Amid Ongoing Mideast Tensions
Oil prices took another hit on Friday, dropping for the third straight session as concerns over Saudi supply disruptions eased. Brent crude futures fell by $1.65, or 1.6%, to $103.17 a barrel.
The price drop came despite ongoing tensions in the Middle East, with Saudi Arabia and Yemen's Iran-backed Houthis exchanging strikes across their border on Thursday.
However, analysts say that immediate concerns over supply tightness have been eased by a combination of factors, including increased oil product inventories in the US, Singapore, and Europe, as well as higher fuel exports from China.
Tamas Varga, an analyst at PVM Oil Associates, noted that while profit-taking may continue into the weekend, the current fundamental outlook does not justify a prolonged fall below $100 per barrel for Brent crude.