Global oil prices fell about 1% for a third straight session on Friday. Brent crude stayed above USD 100 a barrel as alternative supply routes eased concerns over Middle East disruptions.
Brent crude futures were down USD 1.01, or 1%, at USD 103.77 a barrel by 0020 GMT. US West Texas Intermediate futures declined USD 1.03, or 1%, to USD 100.88 a barrel. Both benchmarks also ended about 1% lower on Thursday.
The market showed limited reaction to fresh strikes between Saudi Arabia and Yemen's Iran-backed Houthis on Thursday. Attention shifted towards Saudi Arabia's efforts to restore disrupted crude flows.
Oil prices had risen to around four-month highs earlier this week after crude loadings at Saudi Arabia's Red Sea export hub of Yanbu were suspended. Riyadh also cancelled some deliveries to Europe after an attack damaged its East-West pipeline.
Three pumping stations on the pipeline were damaged, according to satellite imagery and industry sources. Traders have estimated that a prolonged shutdown could affect as much as 4% of global oil supply.
Saudi Arabia is seeking to restore about half of the pipeline's capacity within days. It is also offering additional crude cargoes to Asian refiners through ship-to-ship transfers near Oman's Sohar port.
US Energy Secretary Chris Wright said crude should begin flowing through the pipeline within days. The prospect of restored supplies has helped push oil prices lower despite continued regional tensions.
Iran's Revolutionary Guards Navy said a Togo-flagged oil tanker was struck while attempting an ‘illegal passage’ through the Strait of Hormuz, according to Iranian state media. The incident has added fresh uncertainty to the oil market.
JP Morgan stated that it had no clear baseline view for oil markets for the first time since the start of the US-Israeli war on Iran. Markets are now closely watching whether Saudi Arabia can restore disrupted flows and redirect enough crude to limit the supply impact.
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