Houthi Strikes Threaten Saudi Oil Bypass and Global Crude Prices
The East-West pipeline in Saudi Arabia, which transports 7 million barrels of oil per day, has been threatened by Houthi strikes. The attacks have raised concerns about a potential disruption to Middle Eastern supply and a possible boost to crude prices.
ICE Brent reached $105 per barrel on Friday, September 11, 2026, while Murban and Oman crude, available in the region, soared to $120 per barrel. OPEC lowered its global oil demand growth forecast for 2026 by 200,000 barrels per day, citing a possible recovery of 2.36 million barrels per day in 2027.
The Houthi strikes on the East-West pipeline have been confirmed by satellite imagery from Sentinel and NASA, showing active fires and thermal anomalies in the area. The incident has prompted several Asian refiners to ask Saudi Aramco to price its term crude against ICE Brent, rather than Dubai or Oman, due to concerns over supply reliability.
Saudi Arabia's oil production fell to 6.24 million barrels per day in August, down from 7.14 million barrels per day in July and the lowest level since 1990. The kingdom is seeking to boost its exports by repairing damaged infrastructure and increasing production at existing facilities.