Brent Crude Oil Prices Spike to $108.49 After Saudi Pipeline Closure
Brent crude oil prices surged to $108.49 per barrel at the Asian opening on Monday, before easing back slightly after Saudi Arabia closed its East-West pipeline due to attacks.
The closure of the pipeline, which carries around five million barrels a day of crude bypassing the Strait of Hormuz, is estimated to put approximately four percent of global supply at risk and may force Saudi Arabia to make further output cuts as storage facilities fill.
Waleed Said, Technical Analyst at GivTrade, noted that both Brent and WTI advanced more than three percent 'as renewed attacks disrupted critical Middle East energy infrastructure and shipping routes.'
The current oil market looks driven less by ordinary changes in consumption and more by the physical availability and transportability of crude, according to Said.