Houthi Attacks Spark Oil Price Surge Amid Pipeline Disruption

Saudi Arabia's East-West pipeline remains shut down after attacks by Yemen-based Houthis damaged the critical route. The pipeline, which carries crude from Saudi oil fields to the Red Sea port of Yanbu, is estimated to transport around 4-5 million barrels per day, or roughly 4-5% of global supply.

U.S. Energy Secretary Chris Wright reportedly said that flows could resume 'within days,' but other estimates suggest repairs could take five to six weeks, with partial operations potentially resuming earlier.

The disruption has contributed to a surge in oil prices, with Brent crude futures for November delivery up over 3.4% at around $109.3 per barrel, and October West Texas Intermediate (WTI) futures surging over 5% to $106.6 per barrel.

Stephen Schork, principal of The Schork Group, warned that the U.S. Strategic Petroleum Reserve could be drawn down to its 'operational limits' by November, with reserves potentially falling to around 245 million barrels compared to a capacity of roughly 700 million barrels.