Saudi Pipeline Shutdown Sends Oil Prices Soaring
International oil prices rose on September 14th as Saudi Arabia's key oil pipeline was shut down due to a drone attack. The East-West Pipeline, which bypasses the Strait of Hormuz, is a crucial infrastructure for Saudi Arabia's strategy to export crude oil to the Red Sea.
The pipeline has been exporting up to 7 million barrels of crude oil per day to Yanbu Port in the Red Sea, but operations were suspended on September 11th after being attacked by a drone. The restoration work is expected to take several weeks, which has raised concerns about disruptions in crude oil supply.
As a result, international oil prices increased on September 14th. Brent crude futures for November delivery closed at $105.68 a barrel, up 1.02% from the previous session, while U.S. West Texas Intermediate (WTI) crude futures for October delivery closed at $101.39 per barrel, up 1.34%.