Saudi Pipeline Attack Sends Oil Prices Soaring Amid Global Supply Risks
A series of attacks on Saudi Arabia's East-West pipeline has driven up Brent and WTI prices, as the country struggles to reroute its oil exports around the Strait of Hormuz.
The pipeline, which spans over 1,200 kilometers, was damaged in drone attacks last Friday. Satellite photos released on Sunday night showed a pumping station charred and badly damaged, according to The Guardian.
Saudi Arabia has been rerouting its oil exports through the Red Sea port of Yanbu, with around 4 million barrels per day, or about 4% of global supply, being diverted. However, the country's export stocks are running low, and it could run out within days if the pipeline is not restarted, The Guardian reported.
Ramanan Krishnamoorti, a professor of petroleum engineering at the University of Houston, said that workarounds like the East-West pipeline have been crucial for keeping prices in check. However, he also warned that prices will rise after this shutdown.