Saudi Pipeline Strike Sends Oil Prices Soaring to 16-Week High
Oil prices surged over 4% to a 16-week high after strikes on Saudi Arabia's pipeline and ships in West Asia exacerbated energy supply concerns.
The Brent futures rose $4.68, or 4.5%, to $109.29 per barrel at 10:15 a.m. EDT (1415 GMT), while U.S. West Texas Intermediate (WTI) crude increased $4.21, or 4.2%, to $104.26.
The attacks on Saudi Arabia's east-west pipeline and ships in the Middle East have added to global oil supply woes.
Yemen's Iran-backed Houthis fired dozens of missiles and drones at a Saudi military airbase in Khamis Mushait, near the border, hitting aircraft hangars, radar systems, runways, and ammunition depots.
Rystad's Janiv Shah noted that while prices are currently contained, if the disruption extends beyond the five-to-seven-day inventory cushion, it could lead to a rapid price increase.