Saudi Arabia has temporarily shut down the East-West pipeline due to drone attacks, which has raised fears of significant supply disruptions in the global oil market. Analysts predict that oil prices will remain elevated, with Brent crude futures recently reaching $107.82 per barrel, up over 21% in the past month.
The pipeline's closure poses a risk to 4 million barrels per day of crude oil transport, forcing reliance on the more volatile Strait of Hormuz. Experts warn that if repairs take longer than expected, the market could face severe price shocks. The ongoing conflict in the Middle East is exacerbating the situation, with dwindling global inventories adding to the pressure.
As the situation develops, the potential for further disruptions remains high, highlighting the fragility of oil supply chains in the region