Oil prices fell for a third straight day on Friday as concerns over major Saudi supply disruptions eased, although Middle East tensions kept the market uncertain. Brent crude fell 79 cents to around $104 a barrel, while US West Texas Intermediate (WTI) dropped 70 cents to $101.20 a barrel.

Saudi supply concerns ease

The latest decline came after reports that Saudi Arabia was working to restore part of its East-West oil pipeline capacity within days. The kingdom is also seeking to increase crude shipments to Asian refiners through alternative routes, reducing immediate concerns about a wider supply shortage.

Earlier this week, oil prices moved close to four-month highs after crude loadings at Saudi Arabia’s Red Sea export hub of Yanbu were suspended. Some deliveries to European customers were also reportedly cancelled or delayed following damage to the pipeline.

Hormuz remains a major risk

Despite the recent price decline, oil remains above $100 a barrel as traders wait for clearer evidence that supplies are returning to normal. The Strait of Hormuz also remains a key concern because tanker traffic through the vital route has been heavily affected by regional tensions.

Iranian state media reported that Iran’s Islamic Revolutionary Guard Corps Navy targeted a Togo-flagged oil tanker attempting to pass through the Strait of Hormuz. The incident added to concerns over shipping security and the wider impact of the Middle East conflict on global energy markets.

The market is therefore balancing hopes of recovering Saudi supplies against continuing risks to oil production and transportation. Traders are closely watching pipeline repairs, alternative Saudi exports and developments around the Strait of Hormuz for further direction.