Saudi Supply Risks Push Brent Crude Above $100

Oil prices continued their upward trend as Brent crude held above $100 per barrel. Last week, it surged by 8.84% to reach $104.32. The increase can be attributed to two key factors: attacks on Saudi Arabia's East-West Pipeline and reduced Yanbu loadings.

This has significantly narrowed the Kingdom's remaining bypass capacity around the Strait of Hormuz. As a result, China is facing a tightening crude-supply squeeze, forcing buyers to seek alternative sources such as Oman and ESPO barrels.

The pressure on strategic reserves is also mounting due to reduced access to Saudi and Iraqi grades. To further exacerbate the situation, money managers are net long 411,159 contracts across four crude markets, up 6.7% from last week.