Saudi Pipeline Damage Triggers Crude Shortages and Gold Gains
Saudi Aramco has informed European refining customers that they will receive no crude oil in October due to damage from a drone attack on the East-West pipeline. The pipeline, which can transport up to 7 million barrels of oil per day, was damaged on September 10 and remains shut. Saudi Arabia is seeking to restore about half of the pipeline's capacity within days.
European refiners are turning to alternative supplies from the North Sea and other sources. Poland's Orlen has issued over 10 tenders since last Friday for alternative crude feedstock, which accounts for around 40% of its total supply. Meanwhile, Brent crude fell 1.56% to $103.19 a barrel, while West Texas Intermediate declined 2.17% to $99.7.
The disruption in Saudi oil supplies has eased some concerns about prolonged inflationary pressure, which pushed gold prices to a one-week high on Friday. Spot gold rose 0.88% to $4,378.49 an ounce, while US gold futures settled 0.45% higher at $4,419.40.
Bitcoin also gained ground, jumping 6% on September 18 and briefly moving above $81,000. The cryptocurrency's rally was fueled by the US Securities and Exchange Commission's new framework for tokenized stocks, which allows certain platforms to facilitate on-chain trading of tokenized securities.