Saudi Supply Worries Ease, Oil Prices Decline for Third Straight Session
Oil prices declined for the third consecutive session on Friday as concerns over Saudi Arabia's crude supply eased. The decline came despite renewed fighting between Saudi Arabia and Yemen's Houthis, which had raised fears of further escalation in the Middle East conflict.
The Brent crude futures price fell by 79 cents, or 0.75%, to $104 a barrel, while US West Texas Intermediate crude declined by 70 cents, or 0.69%, to $101.20 a barrel. This marks the first weekly loss for Brent in three weeks.
The recent increase in oil prices had been driven by concerns over Saudi Arabia's crude supply after reports of suspended loadings at its Red Sea export hub of Yanbu and cancelled deliveries to European customers due to an attack on its East-West oil pipeline. However, these concerns eased after reports that Saudi Arabia was working to restore around half of the pipeline's capacity within days.
Analysts are now closely watching traffic through the Strait of Hormuz for any sustained improvement in oil shipments, which could reduce some of the geopolitical premium currently built into prices.