Brent Crude Climbs 2.6% to $107.31 After Pipeline Attack
Global oil benchmarks have surged past $107 as the shutdown of Saudi Arabia's East-West pipeline removes a significant portion of global supply. With physical markets showing signs of acute scarcity and diplomatic efforts to reopen the Strait of Hormuz stalling, traders are increasingly focused on the limited storage capacity at Yanbu and the risk of a prolonged production cut.
GN auto markets/energy reports that Brent crude has extended its rally to trade between $107.38 and $108.23, with the prompt spread widening to $5.53 in backwardation to signal acute near-term scarcity. The report highlights that Saudi Arabia's Yanbu port holds only five to seven days of stored crude, creating a critical window before exports could fall sharply if the East-West pipeline remains offline.
Source: biggo.comGlobal oil benchmarks surged Sunday following a drone strike on a critical Saudi artery. The disruption removes 7 million barrels per day from the market, intensifying supply concerns.
Source: Yahoo! Finance Canada
