Saudi Pipeline Closure Sparks Fuel Price Spikes Fears

A critical Saudi pipeline remains closed after a drone strike damaged it, and its potential prolonged closure could lead to more fuel price spikes.

Bloomberg reported that Saudi Aramco told at least two European refiners they won't receive any crude oil from the company next month due to the pipeline's closure.

Petroleum consultant Andrew Lipow said Saudi Arabia has few options left, with the Strait of Hormuz and Bab el-Mandeb Strait too dangerous for most oil tankers.

Lipow estimated that if the pipeline is restored at 50% capacity in the next few days, it could take one to two months for full operations to resume.

The national average gas price hit $4.46 on Friday, while diesel broke another record high of $6.44, according to AAA.