[International Oil Prices] "Saudi Arabia Cancels Some Crude Oil Exports to Europe"...Brent Crude Nears $109

[Financial News]  

International oil prices surged on the 15th (local time), rising more than 20% this month alone.
The surge came after Saudi Arabia, where concerns had been mounting that oil exports could soon be halted following damage to the East–West Crude Oil Pipeline (Petroline) in an attack by Yemen’s Houthi rebels, reported the adverse development that some exports had been canceled.
Brent crude futures for November delivery, the benchmark for international oil prices, settled 2.9% higher than the previous session at $108.75 per barrel.
West Texas Intermediate (WTI) crude for October delivery, the U.S. benchmark, jumped 4.4% to $105.83 per barrel. It was the highest closing price since May 19.
According to Reuters, Saudi Arabia notified European customers that some crude oil exports scheduled for September delivery had been canceled.
Saudi Arabia had previously described the closure of the Petroline only as a “precautionary measure” and had not disclosed details such as the extent of the damage or the repair timeline.
U.S. Energy Secretary Chris Wright said in an interview with CNBC on the 15th that the pipeline would resume operations within days, calling it “a temporary disruption.”
The East–West Crude Oil Pipeline has served as an alternative route for Saudi Arabia to export crude through the Red Sea when the Strait of Hormuz is blocked. It has transported 7 million barrels per day.
However, the pipeline shutdown has reignited concerns about supply disruptions and a sharp rise in oil prices.
Yulia Grigsby, a senior commodities strategist at Goldman Sachs, noted in a research note on the 14th, “Attacks on oil infrastructure are a sign that this conflict is escalating meaningfully,” adding, “The likelihood that Brent crude will break above $120 per barrel has increased.”

[email protected] Song Kyung-jae Reporter