به‌روزرسانی زنده·۲۲ شهریور ۱۴۰۵
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Risk of Global Oil Supply Decrease Due to Saudi Arabia Pipeline Shutdown
Economy

Risk of Global Oil Supply Decrease Due to Saudi Arabia Pipeline Shutdown

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The shutdown of Saudi Arabia's East-West pipeline could lead to a 4% decrease in global oil supply. As fuel prices hit record highs, this crisis could worsen the situation.

Saudi Arabia is facing a new crisis in its oil industry that could severely impact global oil supply. The country is currently on the verge of losing its oil inventory for exports unless its major pipeline to the Red Sea is operational within the next few days. This shutdown could lead to a 4% decrease in global oil supply.

Impact of Regional Wars on the Oil Market

The halt of oil flow from Saudi Arabia due to drone attacks originating from Iraq has caused the country's East-West pipeline to close on Friday. In the meantime, Saudi Arabia has yet to provide complete details on the extent of the damage or the duration of the shutdown of this route. Some sources estimate that it may take five to six weeks to resolve the damages, while others believe that the issue may be resolved sooner, with oil flow partially resuming during repairs.

Widespread Effects on Global Fuel Prices

A further reduction in oil flow from Saudi Arabia could exacerbate the global supply crisis, a crisis that has significantly impacted fuel prices since the onset of the U.S.-Iran war, driving prices to their highest levels. As global markets are under severe pressure, any sign of reduced oil supply could have serious repercussions on international markets.

Given these circumstances, analysts and oil traders are awaiting more news from Saudi Arabia to make an accurate assessment of the situation ahead. Will Saudi Arabia be able to manage this crisis swiftly, or should we expect further price increases and volatility in the global oil market?

Source: middleeasteye.net

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