Oil Prices Fall as Saudi Pipeline Suffers Damage Amid Russia-Ukraine Ceasefire

WTI oil recently tested new highs but failed to sustain momentum as traders reacted to recent developments in the Middle East and President Trump's posts.

The Saudi East-West Pipeline suffered damage after an attack, which is a major blow to Saudi Arabia's efforts to redirect oil flows away from the Strait of Hormuz. The pipeline has an operating capacity of about 7 million bpd and will be out of commission for several weeks, according to recent reports.

However, U.S. Energy Secretary Chris Wright said that the pipeline would get back to work 'very soon.'

In related news, President Trump announced that Russia and Ukraine agreed to halt attacks on energy infrastructure. According to Trump, these attacks were the key reason for high diesel prices, with Russia being the world's second-largest exporter of diesel.