Crude oil prices pared earlier losses on Friday, trading near $102.20 a barrel as markets assessed the impact of supply disruptions in Saudi Arabia. Satellite imagery and industry sources indicated that three pumping stations serving the kingdom’s critical East–West Pipeline were damaged in last week’s attack—one more than initially reported—while the timeframe for repairs remains unclear.
Tensions in the region intensified as Saudi Arabia and Iran-backed Houthi forces in Yemen exchanged new cross-border strikes on Thursday, prompting civilians to flee by boat across the Red Sea as the fighting widened. In the wake of the pipeline attack, Saudi Aramco has notified at least two European refineries that they will not receive crude shipments next month through the key Red Sea route.
At the same time, China’s exports of refined oil products rose 12.7% year on year in August, with jet fuel exports climbing to a record high. A further relaxation of export controls in September could enable Chinese refiners to capitalize on stronger overseas margins. Overall, crude oil prices are on track for a third consecutive weekly gain.
