Eco
Oil prices registered a notable increase on Tuesday, driven by escalating concerns over potential disruptions to global supplies. This rise came after attacks on vital Saudi energy installations, which led to the halt of the strategic East-West pipeline, coinciding with new attacks in the Kingdom. Prices were directly affected by these concerns. Brent crude futures rose by $1.24, settling at $106.93 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $1.29, reaching $102.65. Friday's attacks, which Riyadh blamed on Iran-backed fighters in Iraq, disabled the vital pipeline. This line allows Saudi Arabia to export oil via the Red Sea, away from the Strait of Hormuz. The pipeline transports approximately 4 million barrels per day to Yanbu port, equivalent to 4% of global oil supplies. Saudi traders and buyers warned of a potential depletion of exportable oil within days if operations are not resumed. Furthermore, shipping traffic through the Strait of Hormuz dropped to fewer than 10 crossings per day over the weekend, compared to an average of 14 crossings during the preceding ten days, intensifying fears regarding sustained global supply disruptions.
