Brent Hits $108 as Saudi Pipeline Shutdown Deepens Supply Fears
The shutdown could remove 4% of global oil supply, traders said, as repairs may take more than a month.
- Brent crude rose to $108 per barrel today following a drone attack on Saudi Arabia's East-West pipeline. The Saudi Foreign Ministry reported drones targeted the 1200-kilometre pipeline in the Riyadh and Medina areas on Thursday, threatening 4% of global oil supplies.
- The East-West pipeline has a capacity to carry 7 million barrels of crude daily, allowing Saudi Arabia to bypass the Strait of Hormuz. Last week, the kingdom reported production fell to 6.2 million barrels per day, down from 10.9 million in February.
- Industry sources told Reuters that if the pipeline remains offline, existing stocks at Yanbu port can only support exports for five to seven days. Analysts at Marhelm warned repairs could take over a month due to a "lack of spare parts."
- Fighting between the Iran-allied Houthis and Saudi-led forces has intensified, with 76,000 people fleeing since July. On Sunday, Houthi forces claimed they attacked a military base in Saudi Arabia, while Saba reported Yemeni forces destroyed Houthi weapons.
- Prospects for peace remain elusive as a meeting scheduled for today in Oman was canceled. Meanwhile, President Trump stated on Sunday the United States could stay in Iran and "keep the oil," comparing the strategy to Venezuela.
28 Articles
28 Articles
The tensions in Saudi Arabia drive up oil prices. After an attack on the East-West oil pipeline, the plant stopped.
Sydney Morning Herald
Oil shock fears back on radar as pipeline attack chokes supply
The latest attack on Saudi Arabia’s East-West oil pipeline could knock four per cent of global supply out of play, and with the Strait of Hormuz a mess, crude is getting more expensive.
Brent Hits $108 as Saudi Pipeline Shutdown Deepens Supply Fears
Brent crude hit $108 per barrel earlier today, following the latest escalation in the Middle East, before retreating to $107.22 per barrel at the time of writing. West Texas Intermediate was trading at $102.66 per barrel. The surge follows the news of a drone attack on Saudi Arabia’s East-West pipeline that could cut off another 4% of global oil supply and signs that efforts at diplomacy are failing. According to unnamed sources quoted by Reuter…
Coverage Details
Bias Distribution
- 50% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
