Oil Prices Drop Amid Saudi Pipeline Restoration Plans
Oil prices continued to decline on September 17, 2026, as signs emerged that supply disruptions in the Middle East may ease. Brent crude fell 2.7%, trading near $102 per barrel, while West Texas Intermediate dipped below $100.
The decline is attributed to Saudi Arabia's efforts to restore its East-West pipeline, which was shut down by a drone attack. The country plans to restore about half of the pipeline's capacity within days, stabilizing oil supply and easing concerns for global markets.
Seabridge Gold Inc (SA), a Canadian resource company focused on gold and copper properties, is also affected by the situation. With a market capitalization of approximately $3.26 billion, SA relies on equity financings and strategic asset sales due to its unprofitable and cash-flow-negative status.
Investors are advised to focus on the Price-to-Sales (P/S) ratio rather than traditional earnings metrics for SA. The company's P/S ratio is significantly elevated compared to its historical median, indicating that the market may be pricing in overly optimistic expectations of future growth.