Oil Prices Level Off, But Brent Rises Amid Pipeline Concerns

Oil prices have stabilized after a recent surge, but Brent has seen a slight increase. As of September 14th evening, investors are still assessing the impact of massive drone attacks on a major oil pipeline in Saudi Arabia.

The November Brent futures on the London-based ICE Futures exchange rose by $2.65 (2.53%) to $107.26 per barrel, while WTI crude oil futures for October delivery on the New York Mercantile Exchange (NYMEX) are up $2.59 (2.59%) to $102.64 per barrel.

The East-West oil pipeline in Saudi Arabia has been shut down following the drone attacks, which could lead to a significant increase in oil prices if shipping traffic in the Strait of Hormuz remains restricted. According to S&P Global Energy, prices could rise to $120 per barrel next year under a base-case scenario.

Wood Mackenzie forecasts that Brent crude for delivery during this period will cost around $110 per barrel by the end of this year and into early next year. However, if the Strait of Hormuz reopens fully in January 2027, prices are expected to fall to around $60 per barrel by early 2028.