Brent Hits $108 as Saudi Pipeline Shutdown Deepens Supply Fears
Brent crude hit $108 per barrel earlier today, following the latest escalation in the Middle East, before retreating to $107.22 per barrel at the time of writing. West Texas Intermediate was trading at $102.66 per barrel. The surge follows the news of a drone attack on Saudi Arabia’s East-West pipeline that could cut off another 4% of global oil supply and signs that efforts at diplomacy are…
Brent crude prices reached $108 per barrel following a drone attack on Saudi Arabia's East-West pipeline, deepening concerns over global oil supply. West Texas Intermediate was trading at $102.66 per barrel. The pipeline, capable of carrying 7 million barrels daily, could see a 4% reduction in output, according to unnamed sources.
The Yemeni Houthis are expanding their control of the Red Sea waterway, making it uncertain how long the pipeline will be out of action. ING commodity strategists remain cautious, maintaining a base case of $80 per barrel for Brent crude for the final quarter of the year. Despite President Trump's comments about potentially staying in Iran and keeping the oil, prospects for peace remain uncertain, as the cancellation of a meeting in Oman leaves diplomatic efforts faltering.
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Also reported by 1 other outlet
- Shutdown of Saudi Pipeline Deepens Energy Crisis bloomberg.com
