Oil Prices Soar After Saudi Pipeline Closure
The closure of Saudi Arabia's East-West pipeline has sent global oil prices soaring to their highest level since May, threatening to put upward pressure on U.S. gasoline prices.
Brent crude, a major benchmark of worldwide oil prices, topped $109 before retreating to about $107, a 50% increase since the start of the war.
The pipeline carries as much as 7 million barrels of oil each day, with roughly 5 million exported. Its closure will exacerbate an already dire shortfall of oil worldwide, according to analysts.
Ramanan Krishnamoorti, a professor of petroleum engineering at the University of Houston, predicts that the price of gasoline may move higher over the coming days as the latest spike in oil costs filters its way through to the pump.
The average price of a gallon of gas in the U.S. currently registers at $4.31, marking a jump of about $1.30 above its pre-war level.