Saudi Pipeline Shutdown Sparks Global Oil Price Surge
Oil prices have surged to $108 per barrel after Saudi Arabia shut down its east-west pipeline in response to drone attacks. The move has caused further disruption to global oil supplies, leading to a price increase of around 3%.
The UK natural gas market is also feeling the impact, with wholesale prices rising by 5% to 209p per therm - the highest level since December 2022.
According to Richard Hunter, head of markets at Interactive Investor: 'This east-west pipeline had been moving several million barrels each day and inevitably causes additional supply constraints.'
The conflict in the Middle East is showing no signs of resolution, with the International Energy Agency predicting a drop in worldwide oil consumption by 2.5 million barrels per day in 2026 compared to 2025.