Oil prices slip toward $104 on easing supply concerns

September 18, 2026 (MLN): Oil prices declined on Friday as expectations of additional Saudi crude reaching international markets helped offset renewed concerns over escalating attacks involving Saudi Arabia and Iran-backed Houthi forces.

Currently, Brent crude futures is down, 0.74%, at $103.74 per barrel, according to data by Mettis Global.

\West Texas Intermediate (WTI) crude futures is up by $4.70, or 4.65%, to $96.46 per barrel by [09:42 am] PST

Saudi Arabia and the Houthis exchanged fresh attacks across their border on Thursday, raising concerns that the widening Middle East conflict could put further pressure on energy supplies already disrupted following U.S. and Israeli strikes on Iran in February.

However, reports that Saudi Arabia has secured alternative routes to deliver some crude shipments to Asian buyers through Oman eased fears of a deeper supply shortfall.

The alternative export arrangements have helped reduce concerns over the impact of a key pipeline closure following Houthi attacks, providing some relief to the oil market.

According to Simon-Peter Massabni, head of business development at XS.com, the recent decline in crude prices shows a partial reversal of the geopolitical risk premium rather than a fundamental shift in underlying market conditions.

He noted that improved Saudi export logistics have lowered the amount of supply traders perceive to be at risk, with oil prices increasingly showing the likelihood of disruption rather than only the volume of crude currently available, as reported by CNBC.

Despite the easing in prices, the region's energy infrastructure remains exposed to further disruptions. Market participants continue to closely monitor developments around the Strait of Hormuz, export routes and oil terminals, while the pace of restoration of Saudi Arabia's East-West pipeline remains a key factor for the market.

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