Oil prices fall 1% but remain above $100 as supply routes offer hope

  • Oil prices fell for a third session as markets assessed Middle East supply risks.
  • Brent fell $1.01 to $103.77, while WTI dropped $1.03 to $100.88.
  • Saudi Arabia offered Asian refiners cargoes through ship-to-ship transfers off Oman’s Sohar port.

Oil prices fell about 1% for a third consecutive session on Friday but remained above $100 a barrel, as expectations for alternative routes for Middle Eastern crude outweighed concerns over renewed strikes between Saudi Arabia and Yemen’s Iran-backed Houthis. Brent crude futures dropped $1.01, or 1%, to $103.77 a barrel by 0020 GMT, while U.S. West Texas Intermediate fell $1.03, or 1%, to $100.88. Both benchmarks had declined about 1% on Thursday. The market had largely absorbed the latest supply concerns after Saudi Arabia’s East-West pipeline was damaged in drone attacks last week, suspending crude loadings at Yanbu and prompting Riyadh to cancel some European deliveries. Satellite imagery and three industry sources indicated that three pumping stations were damaged, while estimates varied on when the pipeline and normal flows would resume. Traders have said a prolonged shutdown could remove as much as 4% of global oil supply. Saudi Arabia was reportedly seeking to restore about half the pipeline’s capacity within days and was offering additional crude to Asian refiners through ship-to-ship transfers off Oman’s Sohar port. U.S. Energy Secretary Chris Wright said crude should flow through the pipeline within days. Separately, Iranian state media said Iran’s Revolutionary Guards Navy reported that a Togo-flagged oil tanker was hit while attempting an "illegal passage" through the Strait of Hormuz. JPMorgan said it had no clear baseline view for oil markets for the first time since the start of the U.S.-Israeli war on Iran. The conflict is due to be discussed at next week’s United Nations General Assembly, where an Iranian delegation will be allowed to attend, according to the U.S. State Department.

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Oil prices fall 1% but remain above $100 as supply routes offer hope - CoinPost Terminal