Saudi Pipeline Restoration Triggers Oil Price Drop Amid Inflation Fears
The global oil market experienced a significant drop as Saudi Arabia began restoring its key East-West pipeline after it was damaged in attacks last week.
West Texas Intermediate (WTI) fell towards $102 a barrel, marking a decline of 3.2% on September 16 - the largest since August 4.
The seven-day average flow through the Strait of Hormuz reached 11 million barrels per day, according to US Energy Secretary Chris Wright, who also stated that 18 million barrels of crude and products went through the waterway earlier this week.
Despite the recent rally in oil prices, which have surged by about three-quarters since 2026 due to the US-Iran conflict and Russia-Ukraine war, the market is still under pressure from global inflationary pressures, prompting the Federal Reserve to raise interest rates on September 16.