Attacks on Saudi Arabian energy facilities have driven up oil prices — Reuters
On September 15, oil prices continued to rise amid concerns about potential supply disruptions. This was due to attacks on Saudi Arabia’s energy infrastructure and the shutdown of the East-West pipeline.
Brent crude futures rose by $1.37, or 1.3%, to $107.05 per barrel as of 04:06 GMT.
U.S. West Texas Intermediate (WTI) crude futures rose by $1.53, or 1.51%, to $102.92 per barrel. At the close of the previous session, both benchmarks had gained more than 1%.
"Oil traders view every new attack or strike on infrastructure as an additional risk to supplies, while remaining highly sensitive to any signs that the East-West pipeline or shipping traffic in the Strait of Hormuz might return to normal," explained Tim Waterer, chief market analyst at KCM Trade.
Over the weekend, cargo ship traffic through the Strait of Hormuz fell to fewer than 10 transits per day, compared with an average of 14 over the previous 10 days.
Saudi Arabia could begin to deplete its exportable oil reserves within a matter of days if it does not resume operations on the East-West pipeline. This could potentially remove up to 4% of global oil supplies from the market.
The world’s largest oil exporter has been using this pipeline to reroute about 4 million barrels per day—roughly 4% of global supplies—to the port of Yanbu on the Red Sea.
This was reported by Reuters.
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