Oil prices experienced a decline as concerns over potential disruptions to Saudi Arabian crude supplies eased, despite ongoing tensions in the Middle East. Brent crude futures dropped 0.84% to $103.94 per barrel, marking its first weekly decline in three weeks. Meanwhile, U.S. West Texas Intermediate futures remained relatively stable at approximately $102.15 per barrel.

Key factors contributing to the easing supply concerns include Saudi Arabia’s increased crude shipments through Oman and rising refined fuel inventories in major markets such as the United States, Singapore, and Europe. Additionally, China has boosted its exports of refined oil products, further alleviating pressures on global supply.

Earlier in the week, oil prices had surged following reports of disruptions at Saudi Arabia’s Red Sea export hub in Yanbu and damage to the East-West oil pipeline. However, efforts to restore parts of the pipeline’s capacity have fostered optimism regarding improved crude flows, contributing to the recent dip in prices.

Despite these developments, risks to oil transportation continue to persist amid the region’s geopolitical tensions. Notably, ship traffic through the Strait of Hormuz remains below its recent average, underscoring the ongoing uncertainty surrounding energy flows through this crucial shipping route.