Crude Oil Jumps as Saudi Pipeline Closure Sparks Global Supply Fears
Crude oil prices have surged by 5.06% to Rs 10,209 as concerns over tightening global supplies intensify.
The surge comes after Saudi Arabia closed a critical pipeline bypassing the Strait of Hormuz following a drone attack.
The move has heightened supply risks and added to geopolitical tensions in the Middle East, with Iran reporting that a supertanker caught fire after striking naval mines near the Strait of Hormuz.
Meanwhile, U.S. crude production reached a record 13.95 million barrels per day in the week ended September 4, but inventories declined by only 0.391 million barrels, below expectations for a 1.6 million-barrel draw.
OPEC has lowered its 2026 world oil demand growth forecast to 380,000 barrels per day, while the International Energy Agency expects further reductions in global oil supply and demand.