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

Key Points:

• Oil prices declined for the third consecutive day as easing concerns over Saudi supply disruptions outweighed worries about escalating conflict between Saudi Arabia and Yemen's Houthis.
• Brent crude futures dropped 0.75% to $104 per barrel, while US West Texas Intermediate futures fell 0.69% to $101.20 per barrel, with Brent on track for its first weekly loss in three weeks.
• Earlier supply disruptions from damage to Saudi Arabia's East-West pipeline caused price spikes, but recent efforts to restore about half of the pipeline's capacity and increased crude cargo offerings via ship-to-ship transfers have alleviated some supply fears.
• Despite improvements, oil prices remain above $100 per barrel as markets await clear evidence of sustained supply normalization amid ongoing regional risks, including an incident involving an oil tanker in the Strait of Hormuz.
• Geopolitical tensions persist with no recent US-Iran peace talks, and the Middle East conflict is expected to be addressed at the upcoming United Nations General Assembly.