Oil Prices Eased Amid Saudi Pipeline Repairs, Bitcoin Surges
Saudi Aramco has informed two European refining customers that they will receive no crude deliveries in October after damage to Saudi Arabia's key East-West pipeline, which can transport up to 7 million barrels of oil per day.
The September 10 drone attack damaged pumping infrastructure at three stations along the 1,200-kilometre pipeline, according to Reuters. The damage is estimated to take several weeks or longer to fully repair, with Saudi Arabia aiming to restore about half of the pipeline's capacity within days.
European refiners are seeking alternative supplies from other sources, including the North Sea and Poland's Orlen has issued more than 10 tenders since last Friday for new crude feedstock. Oil prices eased as concerns about Saudi supply disruptions receded, with Brent crude falling to $103.19 a barrel and West Texas Intermediate declining to $99.7.
The damage to the pipeline also impacted gold prices, which rose to a one-week high on Friday due to reduced inflationary pressure. Spot gold increased by 0.88% to $4,378.49 an ounce and US gold futures settled 0.45% higher at $4,419.40.