Saudi Pipeline Shutdown Sends Oil Prices into Volatile Territory
Oil prices cooled off on September 16 after a multi-day rally, despite concerns over Saudi Arabia's oil supply. The country's East-West pipeline was shut down due to an attack by Yemen's Iran-aligned Houthis, forcing oil loadings at its Yanbu port to be suspended.
The suspension of the pipeline has raised concerns about the global oil supply, with Brent crude futures declining 93 cents, or 0.86%, to $107.82 a barrel, and U.S. West Texas Intermediate futures falling 97 cents, or 0.92%, to $104.86 a barrel.
Daan Struyven, co-head of global commodities research at Goldman Sachs, said that recent attacks indicated that shipping disruptions could spread and become more severe, potentially driving oil prices up to $120 a barrel if exports return to normal.