Saudi Pipeline Outage Sends Oil Prices Soaring on Supply Concerns

Oil prices have surged nearly 2% due to concerns over supply disruptions following attacks on Saudi Arabia's East-West pipeline. The pipeline is a critical route for Saudi oil exports, allowing it to bypass the Strait of Hormuz and transport around 4 million barrels per day to the Red Sea port of Yanbu.

According to Tim Waterer, chief market analyst at KCM Trade, 'oil traders are treating every fresh attack or infrastructure hit as an incremental supply risk, while staying highly sensitive to any sign that the East-West pipeline or Hormuz flows could normalise.'

The Brent crude futures rose $1.87 to $107.55 per barrel, while WTI futures gained $1.88 to $103.27 per barrel. ING analysts stated that uncertainty over the pipeline damage and outage duration could keep prices supported.