Saudi Pipeline Shutdown Sends Brent Crude Toward $109

Oil prices went up after Saudi Arabia stopped a major oil pipeline.

Saudi Arabia said it stopped the pipeline as a safety measure after attacks.

The country has not said when the pipeline will return to normal operations.

The pipeline is an alternative route for moving Saudi oil and avoids the Strait of Hormuz.

Traders are worried that the shutdown could reduce oil supplies.

Brent crude was reported near $108 to $109.30 per barrel, while another major oil price reached about $103.

A meeting about creating a temporary shipping route through the Strait of Hormuz was delayed.

Traders are also watching fighting near the Bab el-Mandeb Strait.

DBS Bank said Saudi oil storage might support exports for five to seven days, but a longer shutdown could cause bigger disruptions.