Oil prices fell for a third consecutive session on Friday as expectations that disruptions to Saudi Arabian supplies would remain limited outweighed concerns over an expanding Middle East conflict and renewed fighting between Saudi Arabia and Yemen’s Houthis.
Brent crude futures declined by 79 cents, or 0.75 per cent, to $104 a barrel by 0319 GMT. US West Texas Intermediate crude dropped 70 cents, or 0.69pc, to $101.20 a barrel. Both benchmarks had ended Thursday about 1pc lower.
Brent was heading towards its first weekly decline in three weeks, down around 0.5pc for the week. WTI, however, remained on course for a weekly gain of approximately 1.2pc.
Despite renewed threats to regional energy supplies, markets showed a relatively muted response after Saudi Arabia and Yemen’s Iran-backed Houthis exchanged fresh strikes across their border on Thursday, further widening the conflict in the Middle East.
Oil prices had risen to nearly four-month highs earlier in the week following reports of disruptions to Saudi exports. Sources said crude loadings at the kingdom’s Red Sea export terminal at Yanbu had been suspended after an attack damaged the East-West pipeline last week.
The disruption also prompted Riyadh to cancel some crude deliveries destined for Europe, increasing concerns about the availability of Saudi supplies.
However, those concerns have since eased, putting downward pressure on prices despite continuing regional hostilities. Oil remains above $100 a barrel as traders wait for clearer evidence about the extent to which recent attacks will affect actual crude flows.
