Saudi Pipeline Damage Sparks Global Oil Supply Jitters
Saudi Arabia's oil supply is facing significant pressure after drone strikes damaged a key pipeline on Friday. The East-West line, which carries crude to the Red Sea port of Yanbu, was shut down by Houthi forces. Industry sources estimate that storage at the port can cover exports for only five to seven days.
Riyadh has not provided a completion date for repairs, with estimates ranging from under a week to more than a month. The outage is exacerbating existing supply chain issues, as Saudi output is already at its lowest in over 30 years and global oil supplies are shrinking.
The situation is further complicated by the ongoing conflict in Yemen, where Houthi forces have been pressing attacks on Saudi oil infrastructure and shipping in the Red Sea. This has added pressure to an already tight market, which could lead to higher fuel prices and inflation worldwide.