Saudi Pipeline Shutdown Threatens Up to 4% of Global Oil Supply

The Middle East oil shock is intensifying as Saudi Arabia's East-West pipeline, which can carry up to 5.5 million barrels of oil per day, has been shut down due to drone attacks.

This disruption threatens between 3.5 and 4 million barrels per day of exports, equivalent to up to 4% of the global oil supply.

The pipeline's closure is particularly concerning for Europe as it heads into winter with natural gas storage at only 69% capacity, well below the five-year average of 85%.

Brent crude prices have surged above $113 a barrel in response to the disruption and wider Middle East tensions, but eased after reports that Saudi Arabia was working to restore up to half of the pipeline's capacity.