Saudi Pipeline Repair Alleviates Oil Supply Concerns Amid Ongoing Mideast Tensions
Oil prices retreated on Thursday after Saudi Arabia's affirmation that its east-west pipeline will be repaired sooner than later, alleviating concerns about a prolonged disruption to global oil supplies.
The pipeline, which transported 7 million barrels per day of crude before being attacked by Iran-backed Houthis, could take up to eight weeks to repair, according to Goldman Sachs estimates. However, analysts believe repairs may be completed 'very soon', and US energy secretary Chris Wright signaled a quicker return to service for the pipeline.
The Saudis have also maintained shipments via additional loadings off Oman, further stabilizing oil markets. Meanwhile, the U.S.-Iran hostilities remain tense, with Iran vowing to keep the Strait of Hormuz closed until US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu are removed from power.