Pipeline attack disrupts Saudi exports

Saudi Arabia closed its East-West pipeline after a drone attack from Iraq damaged it last week. The outage threatens to disrupt global oil supplies.

Oil prices fall on rerouting news

Brent crude dropped one dollar one cent to close at 104 dollars 82 cents per barrel. U.S. West Texas Intermediate fell 52 cents to 101 dollars 91 cents.

Saudis shift crude through Hormuz

Saudi Arabia is making additional crude available to Asian refiners through ship-to-ship transfers near Oman's Sohar port, avoiding the risk of Iranian attack in the Gulf.

Ship transfers surge in Gulf

Ship transfers in the Gulf of Oman have risen to 2.7 million barrels per day from 1.5 million in August. Saudi crude loadings at Gulf ports are also up this month.

Repair timeline remains uncertain

The U.S. Energy Secretary says the outage is temporary and measured in days. But independent analysts warn repairs could take weeks or months.

Risks remain if disruption extends

Rapidan Energy expects Saudi exports to fall 400,000 barrels per day this month. Risks grow if the outage extends past September or attacks escalate.

“Risk remains skewed toward a larger disruption if the pipeline outage extends past September or Iran, the Houthis, or other proxy groups escalate attacks.”