Saudi Pipeline Attack Drives Oil Prices Higher Amid Supply Fears
Oil prices have risen due to an attack on Saudi Arabia's east-west pipeline, forcing its shutdown. Asian refiners are awaiting updates regarding cargo liftings from Yanbu port, located on the Red Sea coast.
The Strait of Hormuz has become a focal point for disruptions in shipping routes. Oman's Energy Minister proposed bypassing this strategic waterway for liquefied natural gas (LNG) shipments to reduce reliance on it. ADNOC Gas is also considering building new LNG export facilities outside the Strait of Hormuz.
Iran and Gulf states were scheduled to discuss commercial shipping routes through the Strait of Hormuz, but these talks have been postponed.
The price of gold has fallen due to increased oil prices and expectations of a Federal Reserve rate hike. The CME FedWatch Tool indicates an 86.5% probability of a rate increase this week, with the Bank of Japan also expected to raise rates on Friday.