Commodities
Saudi Pipeline Closure Triggers WTI Oil Price Drop Amid Middle Eastern Disruptions
The price of WTI oil declined to around $100.50 per barrel despite escalating supply disruptions in the Middle East.
Saudi Arabia canceled several September crude deliveries to European customers due to recent drone attacks that forced the closure of its East-West pipeline, which serves as an alternative shipping route to bypass the Strait of Hormuz.
The ongoing vulnerability of key supply assets in the region is keeping a firm risk premium embedded in crude and refined product prices, according to TD Securities, which warns that upside risks across crude oil and products remain extremely elevated amid energy infrastructure attacks in the Middle East and Russia.