Saudi Pipeline Shutdown Sends Oil Prices Soaring Again

Oil prices surged over 2% on September 14 after renewed attacks on Saudi Arabia and shipping in the Gulf. The Brent crude futures gained US$2.90, or 2.77%, to trade at US$107.51 a barrel by 6:13 AM Thailand time.

The increase follows an 8% rise over the preceding week, when supply disruptions pushed crude above US$100 a barrel for the first time since July. The latest gains come as Saudi Arabia's East-West pipeline remains closed following a drone strike on September 11, threatening up to 4% of global oil supply.

The pipeline shutdown adds to concerns over supply disruptions in the region. Yemen's Iran-aligned Houthis have tightened control over the Bab el-Mandeb Strait, which carries 4-5% of global oil supply. The waterway has become a major transit route for oil exports, making it a key area of concern.