Saudi Oil Pipeline Shutdown Threatens Up to 4% of Global Supply

Saudi Arabia's major oil pipeline, known as the Petroline, remains shut following drone attacks last Friday. The outage is putting pressure on global oil supplies, with some sources estimating that a prolonged closure could lead to a loss of up to 4% of the world's total oil supply.

The pipeline, which spans over 1,200 kilometers from the Abqaiq oil field in the Eastern Province to Yanbu at the Red Sea, has not been given an estimated time for repair. Some sources suggest it could take as long as five to six weeks to fix, while others believe it may be possible to resume partial operations during repairs.

The impact of the pipeline closure is being felt globally, with fuel prices reaching record highs and inflation on the rise. The US bond yields have also surged to their highest levels since the 2008 financial crisis. As a result, there are growing concerns about a worsening global supply crunch.