Saudi Pipeline Shutdown Sends Oil Prices Soaring

Oil prices are trading higher today after Saudi Arabia shut down its east-west pipeline due to attacks on energy infrastructure. The pipeline, which transports 7 million barrels per day of oil, is a vital bypass route for Saudi exports during disruptions in the Strait of Hormuz.

The International Energy Agency (IEA) has reduced its demand forecasts for this year by 940,000 barrels per day, citing ongoing disruptions in the Middle East. The agency now expects global oil demand to fall by 2.5 million barrels per day compared to last year.

Middle distillate markets are also tight, with the ICE gasoil crack reaching record highs of around $84 per barrel. The US diesel crack has broken above $110 per barrel, prompting President Trump to pressure Ukraine to stop targeting Russia's refinery infrastructure.