Brent crude oil fell toward $102 per barrel on Friday, extending losses for a third consecutive session as improving Saudi Arabian supply prospects eased concerns over an immediate shortage despite continuing conflict across the Middle East.
Brent crude oil, against which Nigerian crude oil is priced, declined $2.14, or 2 percent to $102.68 per barrel by :06 a.m. on Friday, while U.S. West Texas Intermediate (WTI) crude dropped $1.83, or 1.8 percent to $100.08 per barrel.
The decline puts Brent on course for its first weekly loss in three weeks as traders reassess the risk of prolonged disruptions to Saudi crude exports.
Oil prices had climbed close to four-month highs earlier in the week after damage to Saudi Arabia’s East-West pipeline disrupted crude flows to the Red Sea export terminal at Yanbu.
The disruption raised concerns about the availability of Saudi barrels after crude loadings at Yanbu were suspended and some deliveries to European customers were cancelled.
Those fears have started to ease following reports that Saudi Arabia is working to restore about half of the damaged pipeline’s capacity within days while using alternative routes to maintain exports.
Saudi Arabia has also been moving additional crude through Oman, providing another route for supplies and reducing immediate concerns that the disruption could remove substantial volumes from the global market.
The East-West pipeline is strategically important because it allows Saudi Arabia to transport crude from its eastern producing regions to the Red Sea, bypassing the Strait of Hormuz.
Market concerns, however, have not disappeared.
Shipping through the Strait of Hormuz remains exposed to heightened security risks as the Middle East conflict continues.
Iran’s Revolutionary Guards said a Togo-flagged tanker was struck while attempting what Tehran described as an illegal passage through the Strait of Hormuz.
Oil flows through Hormuz have nevertheless improved, helping to remove some of the geopolitical premium that pushed crude prices sharply higher earlier in September.
Beyond Saudi supply developments, rising petroleum product inventories in the United States, Singapore and Europe have contributed to the downward pressure on crude prices.
Higher Chinese fuel exports have also helped improve expectations for global product availability, with China’s refined oil product exports rising 12.7 percent year-on-year in August.
Despite the three-day decline, the physical crude market remains tight.
Brent has remained above $100 per barrel since September 9 following attacks on Saudi energy infrastructure and continued disruption to Middle Eastern oil flows.
The market is now focused on how quickly Saudi Arabia can restore its East-West pipeline and whether crude movements through the Strait of Hormuz can continue improving without further major disruptions.
A sustained recovery in both export routes could further reduce the geopolitical premium embedded in crude prices, while renewed attacks on tankers or energy infrastructure could quickly restore upward pressure.
For Nigeria, which relies heavily on crude oil earnings for foreign exchange and government revenue, Brent remaining above $100 continues to provide stronger revenue potential, although the benefit depends on production volumes, export availability and the wider fiscal environment.