Saudi Pipeline Restart and Fed Rate Hike Push Oil Prices Down
Oil prices dropped sharply on Thursday from their four-month highs due to Saudi Arabia's efforts to resume oil flows and the US Federal Reserve's interest rate hike. Brent crude fell by around 2.9% to $105.6 per barrel, while US West Texas Intermediate decreased by 3.3% to approximately $102.3.
The decline came after Brent briefly surpassed $108 earlier in the week due to concerns about supply disruptions in the Middle East. The conflict between Saudi Arabia and Houthi forces backed by Iran has raised worries about the safety of crude shipments through the Red Sea and Bab al-Mandeb Strait.
However, Saudi Arabia's attempts to reopen alternative export channels have provided some reassurance. The kingdom aims to restore around half of the East-West pipeline's throughput within a few days, although fully restoring capacity may take several weeks.