Saudi Oil Exports Disrupted, Global Prices Soar
Global oil prices surged yesterday due to disruptions in Saudi Arabia's crude oil exports. The suspension of loading at the Yanbu export hub and cancellation of some deliveries to Europe contributed to the price increase.
Brent rose by 2.9% to $108.75 per barrel, while U.S. WTI increased by 4.38% to $105.83. These prices are the highest since May 19.
The concerns were intensified after reports that Saudi Arabia had canceled some crude oil deliveries to European buyers scheduled for late September. The Houthi attack on the East-West Pipeline, through which Saudi Arabia redirected oil to the Red Sea, has closed this route.
The pipeline's importance increased sharply after the cessation of normal shipping through the Strait of Hormuz. According to Kpler data, only 4 cargo vessels passed through it yesterday, compared with 10 the previous day.
Buyers and traders predict that if the East-West Pipeline does not resume operations soon, Saudi Arabia could exhaust its oil stocks available for export within several days. This poses risks to volumes equivalent to up to 4% of global supply.