Saudi Pipeline Boost Sends Oil Prices Reeling

Oil prices have retreated from their previous highs as Saudi Arabia has increased its oil flows through a key pipeline, bypassing the Strait of Hormuz. The East-West pipeline is a crucial route that allows Saudi Arabia to export oil directly to the west without relying on the strait.

The move comes as tensions between the US and Iran remain unresolved, despite ongoing peace talks. Brent futures have slid towards $103 a barrel, while West Texas Intermediate crude has fallen towards $90.

Ole Hansen, head of commodity strategy at Saxo Bank, noted that 'geopolitical risks remain unresolved but crude is flowing through the strait and through Saudi's western port.'

The increased oil flows have helped to ease concerns about a potential shortage due to the ongoing conflict in the Middle East.