Crude Prices Recover After Saudi Pipeline Attack Halts Pumping

Crude oil prices reversed earlier losses after reports of a new attack on Saudi Arabia’s East-West pipeline, which halted pumping and caused “big damage,” according to AFP sources. The initial downward pressure came from the G7’s plan to release 100 million barrels of diesel and crude from emergency reserves, along with data showing Middle East oil exports exceeding pre-war levels. Saudi Aramco also cut its official selling price (OSP) to Asia by USD 5 per barrel, surprising markets that had expected a USD 5 increase.

WTI November and Brent December futures rebounded after the pipeline attack, with WTI climbing from a low of USD 89.31 per barrel to around USD 92 per barrel, while Brent recovered from USD 100.65 per barrel to above USD 103 per barrel. Iranian Armed Forces Chief of Staff Major General Abdollahi warned of broader consequences if a new war against Iran is launched, adding to geopolitical tensions. Focus also remains on the Bab al-Mandeb Strait, where claims of control by Yemeni government forces are contested by the Houthis.

Precious metals saw mixed gains, with spot gold trading within a USD 4,124-4,170 per ounce range, while spot silver outperformed within a USD 60.37-61.79 per ounce range. Base metals were modestly firmer, supported by reduced near-term Fed hike expectations, but upside was capped due to the National Day holiday in mainland China, reducing participation from the largest consumer. LME copper traded within a narrow USD 14,281.83-14,388.38 per ton range.

Analysts note that while the pipeline outage is a concrete supply loss, the Bab al-Mandeb claims remain contested. Aramco’s warning that the G7 reserve release will only provide temporary relief aligns with past patterns where such releases cap rallies for weeks rather than quarters. The market will watch for damage assessments, restart guidance on the pipeline, and confirmation of control at Bab al-Mandeb.