Saudi Pipeline Restored, Oil Prices Fall 2% Amid Ongoing Geopolitical Tensions
Oil prices fell over 2% on Monday as concerns about supply disruptions in the Middle East eased following expectations that Saudi Arabia will restore part of its damaged East-West pipeline.
The Brent crude oil price dropped by 2.08% to $101.71 per barrel, while U.S. West Texas Intermediate crude declined by 2.14% to $98.15 per barrel, touching their lowest level since September 10.
Saudi Arabia's efforts to restore pipeline capacity have reassured traders that Middle Eastern supplies are proving more resilient than initially feared despite ongoing geopolitical tensions.
However, supply risks remain elevated as Yemen's Iran-backed Houthis continue attacks on Saudi Arabia, including strikes targeting facilities around Riyadh and the Red Sea oil hub of Yanbu.