Saudi Pipeline Shutdown Sends Oil Prices Soaring
Global oil and gas prices have surged after Saudi Arabia shut down its east-west pipeline following a series of drone attacks. The move has caused significant disruption to global supply, with the price of Brent crude oil rising by around 3% to $108 per barrel.
The UK's wholesale fuel prices, particularly for diesel, are also on the rise due to refining issues and higher oil costs. Wholesale gas prices in the UK have increased by around 5% to 209p per therm, a unit of heat energy, which is the highest level since December 2022.
Richard Hunter, head of markets at Interactive Investor, noted that the east-west pipeline was a crucial route for oil exports and its closure will cause additional supply constraints. He also pointed out that the conflict in the Middle East shows no signs of resolution and is having inflationary impacts on oil products.