Oil prices fall for third day on hopes of limited Saudi supply disruptions

Oil prices fell for a third straight session on Friday, according to Business Recorder, as traders paid less attention to fears of Saudi supply disruptions. Brent crude futures dropped 79 cents, or 0.75 per cent, to $104 a barrel by 0319 GMT, while US West Texas Intermediate lost 70 cents to $101.20 a barrel. Both benchmarks had closed about 1 per cent lower on Thursday.

The decline came even as Saudi Arabia and Yemen's Houthis traded fresh strikes across their border on Thursday, extending the Middle East conflict. Earlier this week, prices had neared four-month highs after sources reported that loadings at Yanbu, the Red Sea export hub, were suspended and some deliveries to Europe cancelled following an attack on the East-West pipeline. Prices have since cooled on reports that Riyadh aims to restore about half of that pipeline's capacity within days and is offering more cargoes to Asian refiners.

Analysts said the market is waiting for clear evidence of a supply improvement, with Brent still above $100. Priyanka Sachdeva of Phillip Nova said recent restoration efforts had eased immediate supply worries. Transport through the Strait of Hormuz remains risky after Iran's Revolutionary Guards Navy said a Togo-flagged tanker was struck on Thursday, according to Iranian state media.