UAE – Mubasher: Oil prices retreated on Friday as worries receded over the threat of disruptions to Middle East supplies due to Saudi Arabia-led air strikes in Yemen.

The bombing of Yemen would have little effect on oil supplies as the country was only a small crude exporter and tankers could avoid passing its waters to reach their ports of destination, said Goldman Sachs.

North Sea Brent crude LCOc1 was down 90 cents at $58.29 a barrel by 0640 EDT after hitting an intraday low of $57.76. U.S. crude CLc1 was down $1.00 at $50.43 a barrel.

U.S. crude CLc1 was down 2.3 % at $50.33 a barrel after jumping 4.5 %, while Brent LCOc1 was 2 % lower at $58.02. [O/R]

The Saudi-led operation has not affected the oil facilities of major Gulf producers, but the fear is the conflict could spread and further unsettle the Middle East and disrupt oil shipments.