Oil prices fell more than 2 percent on Friday, extending losses for a third straight session as signs of improving Saudi crude supplies eased some pressure on the market.
Brent crude futures dropped $2.85, or 2.72 percent, to $101.97 a barrel. US West Texas Intermediate crude fell $2.37, or 2.42 percent, to $99.49 a barrel.
Brent is now heading for a weekly decline of about 2 percent, which would be its first weekly loss in three weeks.
The fall came despite fresh fighting in the region. Saudi Arabia and Iran-backed Houthi forces exchanged strikes across the Saudi-Yemeni border on Thursday, adding to concerns that the wider Middle East conflict could threaten oil supplies.
Oil prices had surged earlier this week after reports that crude loadings at Saudi Arabia’s Red Sea export hub in Yanbu were halted. Riyadh also cancelled some shipments to Europe after an attack damaged its East-West oil pipeline.
Markets have since become less worried about a prolonged supply disruption. Saudi Arabia is reportedly working to restore about half of the damaged pipeline’s capacity within days. The kingdom has also been offering additional crude to Asian buyers through ship-to-ship transfers near Oman’s Sohar port.
“Recent efforts to restore Saudi export capacity have reduced some of the immediate supply anxiety,” said Priyanka Sachdeva, head of market insights at Phillip Nova.
Still, oil remains above $100 a barrel as traders wait for clear evidence that supplies are returning to normal. Shipping through the Strait of Hormuz also remains a major concern after Iran’s Revolutionary Guards Navy said a Togo-flagged oil tanker was struck while attempting to pass through the waterway.
Petrol price in Pakistan
The global oil market remains important for Pakistan, where petrol and diesel prices are closely linked to international energy costs.
The federal government on Thursday reduced the ex-depot price of petrol by Rs0.43 per litre to Rs390.79, while increasing high-speed diesel by Rs3.47 to Rs424.92 per litre.
The revised prices are effective until Friday, September 18, under the government’s petroleum pricing mechanism. The Petroleum Division said the changes reflected movements in global oil prices, Platts rates, premiums and other costs.
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