Crude Oil Price Today: Brent Crosses $107 As Saudi Pipeline Shutdown Raises Supply Fears - ABP Live English

Oil prices rose more than 2 per cent on Monday as a series of attacks affecting major oil-producing and shipping routes heightened concerns about disruptions to global crude supplies.

Brent crude futures gained $2.90, or 2.77 per cent, to $107.51 per barrel by 2313 GMT, while US West Texas Intermediate (WTI) futures advanced $2.27, or 2.27 per cent, to $102.32 a barrel. Both benchmarks had initially climbed more than 3 per cent after markets opened, reported Reuters.

The latest increase came after crude prices had already risen 8 per cent over the previous week, pushing oil above $100 a barrel for the first time since July.

The latest concerns centre on developments involving Saudi Arabia's oil infrastructure, the Strait of Hormuz and the Bab el-Mandeb Strait.

Saudi Arabia's East-West oil pipeline was shut on Friday after a drone strike originating in Iraq. The pipeline enables the world's largest oil exporter to redirect crude shipments without using the Strait of Hormuz.

Its shutdown could put up to 4 per cent of global oil supply at risk.

At the same time, the strategic shipping routes connecting the Middle East with international markets have come under renewed pressure following attacks on vessels and developments involving the Iran-aligned Houthis.

A vessel travelling through the Strait of Hormuz was struck by a projectile and caught fire, prompting the evacuation of its crew, the British maritime security agency UKMTO said on Sunday.

Iran also said a commercial vessel off its coast had been hit, killing one person and injuring four crew members.

The incidents have added another layer of uncertainty for oil markets, which are already assessing the effect of the Saudi pipeline shutdown.

The Strait of Hormuz is particularly important for Saudi Arabia's ability to reroute exports, making the continued disruption of alternative routes a concern for traders.

Developments around Yemen have also raised concerns over another important oil transit route.

The Iran-aligned Houthis reached the strategic island of Perim on Friday, according to the information provided, strengthening their position around the Bab el-Mandeb Strait.

The route has carried between 4 per cent and 5 per cent of global oil supplies in recent months.

Separately, Saudi state media released footage on Sunday showing damage to homes and a mosque in the southern Jazan province, which it attributed to a Houthi attack.

The Houthis said they had also targeted a Saudi military base in a neighbouring province.

The latest attacks have come against a backdrop of a sharp weekly increase in crude prices.

Oil rose about 8 per cent last week, crossing the $100-a-barrel mark for the first time since July as supply disruptions intensified.

Markets had expected further gains at Monday's open because of concerns over the impact of the Saudi pipeline shutdown and risks surrounding regional shipping routes.

Tony Sycamore, an analyst at IG, said the outlook would depend on whether talks in Oman produced an operational outcome or the East-West pipeline was brought back online quickly.

According to Sycamore, without either development, crude prices could continue moving towards the $119.48 level reached in early March.

Also Read : Advance Tax Deadline: Missed Your First Installment? Check How Interest Can Add To Your Tax Bill

Any expectation of an immediate diplomatic development was also tempered on Sunday when Omani Foreign Minister Badr Albusaidi said on X that a meeting planned for Monday between Gulf countries and Iran had been postponed.

The meeting was intended to discuss the Strait of Hormuz.

No peace talks have taken place in the conflict since an interim agreement reached in June broke down after a few weeks. The war was launched six months ago by the United States and Israel.

Oil prices rose over 2% on Monday due to heightened concerns about disruptions to global crude supplies. This was caused by a series of attacks affecting major oil-producing and shipping routes.

Three crucial oil routes are facing renewed pressure: Saudi Arabia's East-West pipeline, the Strait of Hormuz, and the Bab el-Mandeb Strait. These incidents heighten concerns over global oil supply.

The pipeline was shut down on Friday following a drone strike originating from Iraq. Its closure could put up to 4% of global oil supply at risk.

A vessel traveling through the Strait was struck by a projectile and caught fire, leading to its crew's evacuation. Iran also reported a commercial vessel off its coast was hit, resulting in one death and four injuries.

The Iran-aligned Houthis reached the strategic island of Perim, strengthening their position around the Bab el-Mandeb Strait. This route carries between 4-5% of global oil supplies.

ABP Live Business is your daily window into India’s money matters, tracking stock market moves, gold and silver prices, auto industry shifts, global and domestic economic trends, and the fast-moving world of cryptocurrency, with sharp, reliable reporting that helps readers stay informed, invested, and ahead of the curve.

We use cookies to improve your experience, analyze traffic, and personalize content. By clicking "Allow All Cookies", you agree to our use of cookies.