Saudi Pipeline Closure Sparks Fuel Price Fears

The cost of fuel has become a constant source of pain for American drivers. The situation is unlikely to improve anytime soon, as Saudi Aramco has informed at least two European refiners that they won't receive any crude oil from it next month due to a critical pipeline remaining closed after a drone strike.

The pipeline, capable of moving 7 million barrels of crude oil per day, was damaged in the attack. Without access to this pipeline, and with the Strait of Hormuz and Bab el-Mandeb Strait too dangerous for most oil tankers, Saudi Arabia has few options left.

Petroleum consultant Andrew Lipow said that if Saudi Arabia can bypass the pipeline pump stations, they may be able to restore operations at 50% capacity in a few days. However, if repairs are needed to restart the pipeline, it could take one to two months.