Oil Prices Rise Amid Supply Concerns

Oil prices rose on Tuesday, driven by ongoing concerns over supply disruptions. This surge followed attacks on energy facilities in Saudi Arabia, which halted the East-West pipeline, coinciding with new attacks targeting the Kingdom. Brent crude futures increased by $1.24 (1.18%) to $106.93 per barrel, while U.S. West Texas Intermediate (WTI) crude rose by $1.29 (1.24%) to $102.65. Friday's attacks, which Riyadh blamed on Iran-backed fighters in Iraq, disrupted the pipeline that allows Saudi Arabia to export oil via the Red Sea, bypassing 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 have warned that exportable oil might be depleted within days if operations are not resumed. Furthermore, shipping traffic through the Strait of Hormuz fell to less than 10 crossings per day over the weekend, compared to an average of 14 crossings during the preceding ten days, intensifying concerns about continued global supply disruptions.