Saudi Pipeline Attack Sends Oil Prices Soaring Above $108 per Barrel
A recent attack on Saudi Arabia's east-west oil pipeline has disrupted global energy supplies and pushed Brent crude prices to over $108 per barrel, a 48.8% increase from February 27.
The disruption comes as the US-Iran war continues to escalate tensions in the Middle East, with the Strait of Hormuz remaining shut down. The east-west pipeline is a critical export route that bypasses the Strait of Hormus and has been severely disrupted by armed forces, while shipping traffic through the Bab al-Mandeb Strait has plummeted compared to pre-Iran war levels.
Saudi Arabia's oil pipeline was shut down as a precautionary measure after an attack on Friday, with no indications yet on when service will resume. A prolonged outage could force Saudi Arabia to cut production, according to June Goh, a senior oil market analyst at Sparta Commodities.