Oil prices rose, and Saudi Arabia closed a major oil pipeline used to bypass the Strait of Hormuz during the US-Iran conflict after being attacked, exacerbating the global energy crisis. Brent crude oil futures rose to 108 US dollars per barrel. The previous week had surged almost 9%, and WTI crude oil futures were close to 103 US dollars per barrel. European gas prices also rose, at one point as high as 3.8%. Saudi Arabia said on Friday evening that it had preventively shut down the east-west oil pipeline in view of the attack the day before. There is currently no indication when the pipeline will resume operation. “At the end of the day, it depends on how long the shutdown will last,” said June Goh, senior oil market analyst at Sparta Commodities SA. If oil transportation through this pipeline can resume quickly, the impact should be limited, as stocks at Yanbu Port at the western end of the pipeline can be used. But she added that if the shutdown lasts a long time, it could force production cuts to occur.

Oil prices rose, and Saudi Arabia closed a major oil pipeline used to bypass the Strait of Hormuz during the US-Iran conflict after being attacked, exacerbating the global energy crisis. Brent crude oil futures rose to 108 US dollars per barrel. The previous week had surged almost 9%, and WTI crude oil futures were close to 103 US dollars per barrel. European gas prices also rose, at one point as high as 3.8%. Saudi Arabia said on Friday evening that it had preventively shut down the east-west oil pipeline in view of the attack the day before. There is currently no indication when the pipeline will resume operation. “At the end of the day, it depends on how long the shutdown will last,” said June Goh, senior oil market analyst at Sparta Commodities SA. If oil transportation through this pipeline can resume quickly, the impact should be limited, as stocks at Yanbu Port at the western end of the pipeline can be used. But she added that if the shutdown lasts a long time, it could force production cuts to occur.