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Saudi Pipeline Shutdown Sends Brent Crude Toward $108
Oil prices went up after Saudi Arabia stopped a major pipeline.
The pipeline was shut as a precaution after attacks.
Saudi Arabia has not said when normal operations will resume.
Traders are worried that less oil could be available.
Brent crude moved toward $108 per barrel, while another oil price reached about $103.
A meeting about creating a temporary shipping route was delayed.
Traders are also watching tensions near two important waterways for oil shipments.
A DBS Bank analyst said Saudi oil storage may cover exports for five to seven days.
Brent crude rose as much as 3.6% toward $108 a barrel in early Asian trading on Monday, September 14.
West Texas Intermediate crude climbed to about $103 a barrel after Saudi Arabia halted its East-West pipeline.
Saudi Arabia said the shutdown was a precaution following attacks on the pipeline the previous day, without giving a restart timeline.
A planned meeting involving Iran and Gulf countries was delayed, while traders assessed risks near the Strait of Hormuz and Bab el-Mandeb.
DBS Bank analyst Suvro Sarkar said Saudi storage could support exports for five to seven days before major disruptions become possible.
- Who
- Saudi Arabia, oil traders, Gulf countries, Iran, the Houthis, DBS Bank analyst Suvro Sarkar, and U.S. Treasury Secretary Scott Bessent.
- What
- Saudi Arabia halted operations on its East-West pipeline after attacks, pushing crude prices higher and raising concerns about oil supplies.
- Where
- The affected pipeline is in Saudi Arabia; traders were also monitoring the Strait of Hormuz and Bab el-Mandeb.
- When
- The attacks occurred on Friday, and the market reaction took place in early Asian trading on Monday, September 14.
- Why
- Saudi Arabia said the pipeline shutdown was precautionary, while traders feared longer disruptions to oil exports and shipping.
Key facts
- Brent crude
- Rose as much as 3.6% toward $108 a barrel.
- West Texas Intermediate
- Rose to about $103 a barrel.
- Pipeline
- Saudi Arabia halted the East-West pipeline after attacks.
- Restart timeline
- Saudi Arabia provided no indication of when normal operations would resume.
- Saudi storage
- Yanbu storage was estimated to support exports for five to seven days.
- Potential oil price
- Suvro Sarkar said oil could reach $120 a barrel if repair timing remains unclear.
- Diplomatic meeting
- A planned Iran-Gulf meeting about a temporary Strait of Hormuz shipping lane was delayed.
Sources
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