Saudi Pipeline Shutdown Drives Oil Prices Higher Amid Global Supply Concerns

Oil prices surged as Saudi Arabia's East-West oil pipeline was forced to shut down due to a drone attack, further straining global supply concerns.

The pipeline, which carries about 4 million barrels per day - roughly 4% of the world's oil supply - has been temporarily closed. Saudi officials have not provided details on the extent of the damage or how long it will remain out of service.

Industry sources indicate that Yanbu, a critical Red Sea port, currently has enough inventories to maintain exports for only five to seven days. If repairs take as long as estimated - between five to six weeks - global oil supply could decline by 5.7 million barrels per day this year, or about 6%.