Saudi Oil Pipeline Shutdown Sparks Global Price Surge

Saudi Arabia's East-West Crude Oil Pipeline was temporarily shut down after a drone attack from Iraq on September 11th, further straining the global oil market. The pipeline, operated by Saudi Aramco, was damaged at three pumping stations along its 1,200 kilometer route.

The pipeline, designed to bypass the Strait of Hormuz, has been moving an estimated 4 to 5 million barrels per day, roughly 4-5% of global oil supply. However, it is unclear how long repairs will take, with some sources suggesting five to six weeks.

Saudi Aramco aims to bring back half of the pipeline's capacity in days by working around damaged infrastructure. The shutdown has led to increased oil prices, with dated Brent crude surging to $130 per barrel and diesel above $200 per barrel.