Oil Prices Soar as Saudi Supply Troubles Deepen Amid Houthi Attacks
Oil prices surged to their highest since May 19 on Tuesday as concerns over Saudi Arabia's supply troubles deepened. The attacks on Saudi oil infrastructure by Yemen's Iran-aligned Houthis have forced Riyadh to shut down its East-West pipeline, which carries oil from the east to Yanbu on the west coast. This has suspended crude loadings at the Red Sea export terminal in Yanbu, further exacerbating the supply concerns.
The cancellation of some Saudi crude shipments to European customers has strengthened expectations that European refiners will turn to U.S. supplies, lifting WTI relative to Brent. Traders have been buying WTI futures on bets that disruptions to Saudi exports will last longer than expected.
Lipow Oil Associates' president Andy Lipow said the cancellation of some Saudi crude shipments to Europe has strengthened expectations that European refiners will turn to U.S. supplies, helping lift WTI relative to Brent.