Saudi Pipeline Repair Estimates Split Market on WTI Price Surge
The price of West Texas Intermediate (WTI) crude oil settled at $105.83 a barrel on Tuesday, up $4.44 or 4.4%, as traders were left wondering when Saudi Arabia's damaged East-West Pipeline would resume moving oil.
U.S. Energy Secretary Chris Wright said he expected the pipeline to flow through in days, according to Reuters. However, regional officials told the Associated Press that it could be unavailable for weeks.
The disagreement over the repair timeline is crucial because the East-West line is a key route for Saudi crude exports, bypassing the Strait of Hormuz. It's responsible for transporting about 2.6 million to 4 million barrels per day, below its 7 million-barrel capacity.
Energy Secretary Wright's shorter estimate provides some relief to traders, who are concerned about the impact of disruptions on oil supply and prices. However, the market still faces uncertainty over when the pipeline will be fully operational.