Pipeline Shutdown Sends Oil Prices Soaring Despite Cancellation of Expected Meeting

Saudi Arabia's Energy Ministry shut down the East-West pipeline due to precautionary measures after drone attacks on Thursday and Friday hit the line and equipment that runs it. The pipeline, which carried 4-5 million barrels a day to Yanbu on the Red Sea, had been a replacement route for Saudi exports since February.

The International Energy Agency (IEA) expects world supply to decline by 5.7 million barrels a day this year, about 6 percent, up from its previous projection of 4 percent.

Gold has lost $77 and is trading near $4,331 after the cancellation of a meeting that was previously expected to happen on Friday. The odds of a hike by the Federal Reserve are at 90 percent, with a decision due on Wednesday.