Oil Goes Down 2% as Saudi Supply Concerns Recede

Oil prices fell 2% on Friday, extending losses for a third straight session as easing concerns over Saudi supply disruptions outweighed anxiety about a widening of conflict across the Middle East.

Brent crude futures LCOc1 fell by $2.14, or 2%, to $102.68 a barrel by 0806 GMT. U.S. West Texas Intermediate CLc1 futures fell $1.83, or 1.8%, to $100.08.

Benchmark Brent prices are on track for their first weekly loss in three.

Immediate concerns over supply tightness have been eased by a combination of Saudi Arabia loading more crude via Oman, a build in oil product inventories in the U.S., Singapore and Europe, plus increased fuel exports from China, said PVM Oil Associates analyst Tamas Varga.

"While continuous pre-weekend profit-taking cannot be ruled out, the current fundamental outlook would not justify a prolonged fall below $100 (a barrel) basis Brent," Varga added.

Markets largely shrugged off concerns even as Saudi Arabia and Yemen's Iran-backed Houthis exchanged fresh strikes across their border on Thursday, expanding the Middle East war front.

Prices climbed to close to four-month highs earlier in the week after sources said crude loadings at Saudi Arabia's Red Sea export hub of Yanbu had been suspended and Riyadh cancelled some