Oil Prices Plummet as Saudi Pipeline Restoration Eases Supply Fears
Oil prices fell on Wednesday as concerns about supply disruptions in West Asia eased following Saudi Arabia's announcement that it will restore its East-West pipeline. The Brent crude price dropped below $105 a barrel, while West Texas Intermediate (WTI) remained near $101.
The East-West pipeline, which transports oil across Saudi Arabia to the Red Sea coast, was damaged by attacks last week, causing prices to surge. However, an informed source told Bloomberg that Saudi Arabia plans to restore about 50% of the pipeline's capacity within a few days and complete the restoration in six weeks.
The US Congress has authorized tariffs on countries buying Russian petroleum products, potentially including China and India. This move is seen as a manifestation of Washington's commitment to Ukraine's resistance against Moscow's military invasion.