Saudi Oil Disruptions Send Oil Prices Soaring

Oil prices surged on Tuesday after Saudi Arabia suspended oil loadings at its Red Sea port of Yanbu and Libya halted operations at three oil fields, sparking concerns about global supply disruptions.

The Brent crude futures rose $3.49, or 3.3%, to $109.20 a barrel, while US West Texas Intermediate futures gained $5.08, or 5.01%, to $106.46, both contracts reaching their highest close in nearly four months.

According to Reuters, oil loadings at Saudi Arabia's Yanbu export terminal had been suspended due to the Houthi attacks on Monday and a previous attack on the East-West Pipeline on Friday.

The disruption has strengthened expectations that European refiners will turn to US supplies, supporting WTI relative to Brent. Andy Lipow, president of Lipow Oil Associates, said traders have been buying WTI futures on expectations that disruptions to Saudi exports will last longer than expected.