Saudi Pipeline Repair Efforts Stabilize Oil Prices Amid Global Disruptions
Saudi Arabia's efforts to repair its damaged East-West pipeline have helped stabilize oil prices.
The pipeline, which carries oil from Saudi Arabia to its Red Sea coast, was damaged in attacks last week and had caused a significant price increase. Brent crude traded near $106 a barrel after losing 2.7% on Wednesday, while West Texas Intermediate was above $102.
A person familiar with the matter said that Saudi Arabia is seeking to return about half of the pipeline's capacity within days and full operations in six weeks.
Crude prices have rallied by about three-quarters this year due to supply disruptions caused by the US-Iran war and the Russia-Ukraine conflict. The Federal Reserve raised interest rates on Wednesday, citing surging oil and fuel costs that have contributed to global inflationary pressures.