Saudi Oil Pipeline Outage Hits Global Supplies

A critical Saudi oil pipeline hit by drones will be out of service for weeks as damage is repaired, further restricting oil flow. Regional officials said the East-West Pipeline, which carries up to 4 million barrels per day, will be mostly down for three to five weeks.

The attack on Thursday was blamed on Iranian-backed militias in Iraq and has forced Saudi Arabia to shift its exports away from the Persian Gulf due to Iranian attacks stifling shipping through the Strait of Hormuz. The pipeline's shutdown could take a significant toll on global oil supplies, with prices already rising over 2% amid growing concerns.

Rystad Energy, a Norway-based research firm, warned that a month-long closure would be a 'large disruption' to crude deliveries, making them longer and more expensive. It also noted that the market could initially manage it but a longer shutdown would require a major reallocation of global crude flows.