Saudi Oil Exports Threatened by Pipeline Shutdown

Saudi Arabia's East-West oil pipeline has been shut down following drone attacks from Iraq. According to energy industry sources, repairs could take up to six weeks, potentially disrupting around 4% of the global oil supply.

Industry estimates suggest that Yanbu, a port on the Red Sea, can only maintain exports for five to seven days without the pipeline's support. Saudi Arabia uses this pipeline to reroute 4 million barrels of oil per day from its Abqaiq processing plant to Yanbu.

The shutdown has caused oil prices to jump, with Brent crude trading at $104.44 on Friday. This is the highest price since May due in part to the ongoing war between Iran and Saudi Arabia's allies in Yemen.