Saudi Pipeline Attack Sends Oil Prices Soaring Above $100 per Barrel

Saudi Arabia's key crude oil transport route has been severely disrupted after a drone attack on September 10. The East-West Pipeline, which connects the country's eastern oil fields with the Red Sea port of Yanbu, was struck by drones and shut down.

The pipeline is critical for bypassing the Strait of Hormuz and can transport up to 7 million barrels of crude oil per day. Local sources expect it could take at least several weeks to restore normal operations, causing concerns over supply disruptions.

As a result, international oil prices have surged above $100 per barrel, with Brent crude futures climbing above $105 per barrel and West Texas Intermediate (WTI) surpassing $101. Dubai crude, which accounts for a large share of South Korea's oil imports, reached $123.66 per barrel, surging 21.3% in a single week.

The government has held an emergency meeting to discuss response measures, and refiners expect the short-term impact to be limited due to already secured crude import volumes for September and October. However, any disruption to shipments scheduled for this month could directly affect November import volumes, with Saudi Arabia accounting for 34.1% of South Korea's total crude imports as of July.