Brent crude fell to around $102 a barrel on Friday, extending its decline for a third straight session as concerns over supply disruptions in the Middle East began to ease.
Brent was trading at $102.75 a barrel on September 18, down 1.97% from the previous day. Even with the latest drop, the benchmark is still up 12.15% over the past month and 54.10% from a year ago.
One of the main factors taking some pressure off the market is Saudi Arabia’s progress in restoring its oil export infrastructure.
The kingdom is targeting the recovery of around half the capacity of its East-West pipeline within days, with full operations expected within about six weeks.
While the repairs are underway, Saudi Arabia is finding other ways to keep crude moving. Some exports are being rerouted through the Strait of Hormuz, with shuttle vessels carrying crude through the waterway before loading tankers waiting outside the strait.
That arrangement is helping keep exports flowing while reducing the time larger tankers spend exposed to potential attacks.
There are also signs of diplomatic efforts to contain the wider disruption. Reports indicate that China has asked Iran to help curb Houthi attacks after an appeal from Saudi Arabia, as attacks on the kingdom’s energy infrastructure have intensified.
The situation, however, remains uncertain. Any fresh attacks on oil facilities or disruption around key shipping routes could quickly put renewed pressure on crude prices.
US President Donald Trump has also said he is considering whether to resume attacks on Iran, adding another source of uncertainty to the outlook for the region.
For now, the market is taking some comfort from Saudi Arabia’s progress in restoring pipeline capacity and efforts to keep crude exports moving.
But with Brent still more than 50% above its level a year ago, developments around Middle Eastern energy supplies remain a major factor for oil prices.
