Saudi East-West pipeline expected to resume operations soon, US energy chief says
Saudi East-West pipeline expected to resume operations soon, US energy chief says Saudi Arabia’s East-West oil pipeline is expected to resume operations "soon" after it was shut down following a strike, US Energy Secretary Chris Wright said Monday. “I think you'll see the pipeline back running very soon,” Wright told Bloomberg. “This is not new for strikes on this energy infrastructure. And, of…
Oil prices surged above US$106 a barrel on Tuesday as Saudi Arabia faced new Houthi attacks and the East-West pipeline remained shut down, fueling worries of prolonged disruptions to global crude supplies. Brent crude futures rose 1.18% to US$106.93 a barrel, while US West Texas Intermediate futures climbed 1.24% to US$102.65 a barrel.
Iran-backed Houthi forces in Yemen launched fresh attacks on Saudi Arabia's military installations, following earlier strikes that disrupted the East-West pipeline. Traders are treating each attack as a rising supply risk and are highly sensitive to any signs that the pipeline or Gulf oil flows may normalize. With Saudi Arabia potentially running out of exportable oil within days, the outage could remove up to 4% of global oil supply.
The supply concerns come ahead of the Federal Reserve's policy decision this week, with markets pricing in an 89% chance of a 25-basis-point rate increase, which could further tighten monetary policy and boost the US dollar.
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- Gulf states call off meeting with Iran; Houthis launch new attack on Saudi brecorder.com
- The Commodities Feed: Saudi supply uncertainty has oil extending gains hellenicshippingnews.com
- Oil tops US$106 as Saudi pipeline outage fuels global supply fears thevibes.com
- Oil climbs as Saudi pipeline outage, fresh attacks heighten supply concerns myjoyonline.com
- Saudi pipeline shutdown exposes shrinking global oil-supply buffers al-monitor.com
- Oil surges past $108 as Saudi pipeline shutdown and Houthi strikes roil markets qz.com
- Oil climbs as Saudi pipeline outage, fresh attacks heighten supply concerns finance.yahoo.com
