Oil prices fell for a third straight session on Friday as expectations that Middle Eastern producers could restore disrupted supplies offset concerns over the widening U.S.-Iran conflict.

As of 22:31 ET (02:31 GMT), Brent Oil Futures expiring in November fell 0.7% to $104.12 per barrel, while West Texas Intermediate (WTI) crude futures slipped 0.5% to $101.40 per barrel.

The declines came despite fresh fighting between Saudi Arabia and Yemen’s Iran-backed Houthis, which has added another layer of risk to oil supplies in a conflict that has already disrupted shipments through the Strait of Hormuz.

Markets were instead focusing on signs that Saudi Arabia could partially restore flows through its East-West pipeline, which was damaged in drone attacks last week.

The pipeline normally transports crude to Yanbu on Saudi Arabia’s Red Sea coast. Media reports showed that Saudi Arabia is seeking to restore about half of the pipeline’s capacity within days.

Riyadh has also been offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman’s Sohar port, providing an alternative route for exports and easing some concerns over lost volumes, reports showed.

Still, the supply outlook remains highly uncertain. Iran’s Revolutionary Guards Navy said on Friday that a Togo-flagged tanker had been struck while attempting what it described as an "illegal passage" through the Strait of Hormuz, according to Iranian state media.

The declines came despite fresh fighting between Saudi Arabia and Yemen’s Iran-backed Houthis, which has added another layer of risk to oil supplies in a conflict that has already disrupted shipments through the Strait of Hormuz.

Markets were instead focusing on signs that Saudi Arabia could partially restore flows through its East-West pipeline, which was damaged in drone attacks last week.

The pipeline normally transports crude to Yanbu on Saudi Arabia’s Red Sea coast. Media reports showed that Saudi Arabia is seeking to restore about half of the pipeline’s capacity within days.

Riyadh has also been offering additional crude cargoes to Asian refiners through ship-to-ship transfers off Oman’s Sohar port, providing an alternative route for exports and easing some concerns over lost volumes, reports showed.

Still, the supply outlook remains highly uncertain. Iran’s Revolutionary Guards Navy said on Friday that a Togo-flagged tanker had been struck while attempting what it described as an "illegal passage" through the Strait of Hormuz, according to Iranian state media.

Source: Investing.com

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