Saudi Pipeline Shutdown Sends Crude Oil Futures Soaring
Crude oil futures rose on Tuesday following the shutdown of Saudi Arabia's East-West pipeline and the postponement of talks between Gulf states and Iran. At 10 am, November Brent oil futures were at $107.31, up by 1.54 per cent, while October crude oil futures on WTI were at $103.18, up by 1.77 per cent.
The shutdown of the East-West pipeline, which carries 7 million barrels a day, has raised concerns about the impact on global oil supplies. According to ING Think's Commodities Feed, prices are likely to remain well-supported until clarity is obtained on the extent of damage and the duration of the outage. Reports suggest the pipeline could be offline for several weeks.
The situation is further complicated by tensions in the region, with Oman postponing a meeting between Iran and Gulf states to reopen the Strait of Hormuz. US President Donald Trump has weighed in on the issue, saying that 'the failing Nation of Iran wants to make a deal, quickly and badly.'