Oil prices decline for a third session on expectations of alternative routes
Oil prices fell by about 1 percent on expectations that alternative export routes could come into play, while maintaining their course above 100 dollars.
Oil prices declined for a third consecutive session despite supply concerns and attacks in the Middle East, driven by expectations that alternative export routes could be utilized. Brent crude dropped to 103.77 dollars and WTI fell to 100.88 dollars, while maintaining their position above 100 dollars.
Third Session Decline in Markets
Oil prices recorded a decline of about 1 percent on Friday due to expectations that alternative export routes could be used. Brent crude continued to stay above 100 dollars per barrel.
Brent futures fell 1 percent to 103.77 dollars, while US West Texas Intermediate crude also decreased 1 percent to 100.88 dollars.
Disruption in Saudi Arabian Exports
Sources reported that Saudi Arabia halted crude oil loadings from Yanbu on the Red Sea coast and that deliveries were affected due to damage to the East-West oil pipeline.
According to satellite images and industry sources, three pumping stations on the pipeline were damaged. Investors note that this situation could affect up to 4 percent of global oil supply.
Alternative Routes and the Strait of Hormuz
To limit supply disruptions, Saudi Arabia began offering additional crude oil cargoes to Asian refiners through ship-to-ship transfers off the coast of Oman's Sohar Port.
Meanwhile, the Iranian Revolutionary Guard Corps Navy announced that a Togo-flagged tanker was hit during an attempted illegal passage through the Strait of Hormuz.
Diplomatic Developments and Uncertainty
Diplomatic developments are also among the key factors determining the direction of prices in oil markets. US President Donald Trump stated that he is at a critical decision-making stage regarding a military operation against Iran.