London, Sep 18 (V7N)- International crude oil prices fell for a third consecutive day on Friday as expectations that Middle Eastern supplies could continue through alternative routes eased concerns over potential disruptions.
According to Reuters, Brent crude futures fell 1.1%, or $1.10, to $103.77 per barrel as of 12:20 a.m. GMT on Friday. US West Texas Intermediate (WTI) crude also declined 1.1% to $100.88 per barrel. Both benchmarks had fallen by nearly 1% on Thursday.
Market analysts said the absence of major disruptions to global oil supplies has provided some relief despite renewed exchanges of attacks involving Saudi Arabia and Iran-backed Houthi rebels in Yemen.
Oil prices had climbed to a four-month high earlier this week amid escalating tensions in the Middle East. Market concerns intensified after crude shipments from Saudi Arabia's Yanbu port were suspended and some shipments to Europe were cancelled.
Uncertainty also grew following damage to Saudi Arabia's East-West oil pipeline in an attack last week. Reuters reported that three pumping stations were damaged, with one reportedly suffering more extensive damage than initially estimated.
Analysts have warned that if the pipeline remains out of service for an extended period, as much as 4% of global oil supplies could potentially be affected.
Saudi Arabia, however, is taking steps to restore supplies. Bloomberg reported that Riyadh is seeking to restore half of the pipeline's capacity within several days and is arranging additional crude supplies for Asian refineries through ship-to-ship transfers near Oman's Sohar port.
US Energy Secretary Chris Wright has also said oil flows through the pipeline could resume within a few days.
Meanwhile, military tensions continue to weigh on market sentiment. Iranian state media reported that the Islamic Revolutionary Guard Corps (IRGC) Navy claimed to have attacked a Togo-flagged oil tanker that was allegedly attempting to navigate the Strait of Hormuz "illegally."
Major financial institutions have also adopted a cautious outlook. JPMorgan said it has, for the first time since the outbreak of the Iran-Israel conflict, refrained from issuing a specific forecast for oil prices.
Meanwhile, no new peace talks have taken place between the United States and Iran since an interim agreement reached in June collapsed. The continuing Middle East crisis is also expected to feature in discussions during the upcoming United Nations General Assembly session.
END/SMA/AJ
