Oil Prices Set for Second Weekly Drop as Saudi Output Recovery Offsets Middle East Tensions

Oil prices are heading for a second consecutive weekly decline, with Brent crude trading at $95.87 per barrel and West Texas Intermediate at $88.49 per barrel, despite ongoing Middle East tensions and threats to shipping. The decline is driven by Saudi Arabia's crude production rebounding to 10.56 million barrels daily, essentially pre-war levels, which offsets continued attacks, including Iranian strikes on tankers in the Strait of Hormuz and Houthi attacks on Saudi energy sites. Prices remain significantly higher than February levels before the war started, though a peace deal appears remote after President Donald Trump rejected negotiations, while Aramco plans to further raise production through year-end.