Aramco Pipeline Damage Sparks Global Commodity Price Volatility

Saudi Aramco has informed at least two European refining customers that they will not receive any crude oil deliveries in October due to damage to the kingdom's East-West pipeline. The 1,200-kilometer pipeline, which can transport up to 7 million barrels of oil per day from Saudi Arabia's eastern oil fields to the Red Sea port of Yanbu, has been shut since a September 10 drone attack damaged pumping infrastructure.

The pipeline is expected to be partially restored in a few days, but estimates for a full recovery range from several weeks to longer. In the meantime, European refiners are seeking alternative supplies from the North Sea and other sources, with Poland's Orlen issuing over 10 tenders since last Friday for alternative crude feedstock.

Gold prices rose to a one-week high on September 18 as easing oil prices reduced concerns about prolonged inflationary pressure. The US gold futures settled 0.45% higher at $4,419.40, while silver rose 2.3% to $66.70.

Bitcoin jumped 6% on September 18, briefly moving above $81,000 after trading around $77,000-$78,000 for most of the week. The move followed the US Securities and Exchange Commission's (SEC) new framework for tokenized stocks, which provides a regulatory pathway for eligible platforms to offer blockchain-based versions of traditional equities.