Saudi Pipeline Disruption Sends Oil Prices Lower Amid Fed Rate Hike

Oil prices fell on Thursday as Saudi Arabia diverted some crude exports through the Strait of Hormuz, according to CNBC. The move came after drone attacks damaged a pipeline to the Red Sea earlier in the week.

Saudi Arabia's decision resulted in lower prices for West Texas Intermediate (WTI) and Brent oil futures. WTI October crude oil futures dropped 1.9% to $100.49 per barrel, while November Brent oil futures fell 3% to $102.92 a barrel.

The Federal Reserve also raised interest rates by 25 basis points on Wednesday, the first time since July 2023. Meanwhile, Comex gold December futures rose 0.5% to $4,407.40 per ounce.