Oil Prices Soar on Saudi Pipeline Shutdown and Libya Outage
Oil prices surged on Tuesday as outages at key Saudi Arabia's East-West pipeline and Libyan oil fields raised concerns about supply risks. Global benchmark Brent settled up nearly 3% around $109 a barrel, while West Texas Intermediate rose over 4%. The disruptions come amid already tight market conditions due to the Iran war.
Saudi Aramco delayed oil supplies for some European customers this month after the pipeline halt last week. Traders are uncertain about the duration of the closure, with estimates ranging from days to six weeks. US Energy Secretary Chris Wright said the pipeline outage would be measured in days and could reopen soon.
Libya also shut several oil fields and may declare force majeure on production after the closure of the Hamada-Zawiya pipeline. Brent futures have rallied by about three-quarters this year, driven by the prolonged Middle East conflict and Russia-Ukraine war.