Oil prices fell by around 2% on Friday 18 September, continuing a three-session losing streak, as concerns over potential supply disruptions from Saudi Arabia showed signs of easing, reported Reuters.
By 08:06 GMT, Brent crude futures had dropped by $2.14, or 2%, to $102.68 a barrel (bbl).
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Meanwhile, US West Texas Intermediate (WTI) futures had declined by $1.83, or 1.8%, to $100.08/bbl. This puts Brent on track for its first weekly loss in three weeks.
Earlier in the week, prices approached their highest levels in nearly four months after reports indicated that crude loadings at Saudi Arabia’s Red Sea export hub in Yanbu had been suspended.
Riyadh also reportedly cancelled some deliveries to Europe following a pipeline attack last week.
These events, combined with escalating conflict between Saudi Arabia and Yemen’s Houthis, had intensified market anxiety about future oil supplies.
On Thursday, Saudi Arabia and Houthi forces exchanged strikes across their border, with fresh Saudi airstrikes reported in Yemen’s Hajjah province and near Taiz, reported Reuters.
Saudi Arabia’s civil defence authorities confirmed the first death inside the kingdom from debris after a drone was intercepted over the city of Taif, reporting that a Yemeni national was killed.
Despite the intensified regional conflict, market concerns subsided on reports that Saudi Arabia was working to restore around half of the capacity at its damaged East-West oil pipeline within days.
Industry sources provided varying timelines for a complete return to normal crude flows.
Elsewhere, Chinese exports of refined oil products increased by 12.7% year on year (YoY) in August, with customs data showing jet fuel exports at a record high. Expectations persist that China may relax export controls further in September.
Meanwhile, Iran’s Revolutionary Guards Navy reported that a Togo-flagged oil tanker caught fire after being struck during what Iranian state media described as an “illegal passage” through the Strait of Hormuz.
Shipping through the area remains challenging due to the ongoing conflict.
The broader tensions in the Middle East will be discussed at the upcoming UN General Assembly, with an Iranian delegation set to attend, the US State Department said.
