Saudi Pipeline Attack Sends Oil Prices Soaring
Oil prices surged on Monday after an attack on a key pipeline in Saudi Arabia shut down its operations, sparking supply fears and deepening a global energy crunch.
The East-West pipeline, which carries oil from the kingdom's eastern region to its western coast, was halted as a precautionary measure following the attack on Friday.
Saudi Arabia has not provided any indication of when operations will resume at normal capacity, leaving traders worried about potential disruptions in the global energy supply chain.
According to Suvro Sarkar of DBS Bank, the Yanbu storage in Saudi Arabia can support exports for five to seven days before huge disruptions could occur. Until clarity emerges on the repairing timeline, oil prices could head towards $120 a barrel in the near-term, he added.