Oil rises to $109 as Saudi pipeline closure tightens global supply

  • Saudi Arabia closed its East-West oil pipeline after an attack last week.
  • Brent crude topped $109 before retreating to about $107, up 50% since the war began.
  • The pipeline can carry 7 million barrels daily, with roughly 5 million exported.

Global oil prices climbed Monday after Saudi Arabia shut its East-West pipeline following an attack, intensifying concerns about a worldwide crude shortfall. Brent crude, a key global benchmark, briefly topped $109 before easing to about $107, up 50% since the start of the war. The pipeline can carry as much as 7 million barrels a day, including roughly 5 million barrels for export, equal to about 5% of global supply. The closure could push U.S. gasoline prices 25 cents to 50 cents higher over coming weeks, according to University of Houston professor Ramanan Krishnamoorti, and potentially above $5 a gallon if the outage lasts months. Texas Christian University professor Tom Seng said the effect may be limited because the disruption is already reflected in prices and seasonal fuel demand typically declines in fall. He also warned that Houthi attacks on tankers in the Bab el-Mandeb Strait could complicate exports even if the pipeline is repaired, adding delays and costs to alternative shipping routes.

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