Saudi pipeline shut for weeks after drone attack, oil prices surge

Saudi Arabia shut its East-West oil pipeline on Friday after a Thursday drone attack it blamed on Iranian-backed militias in Iraq. Two regional officials briefed on the matter told the Associated Press repairs, including damage at a major pumping facility, could take three to five weeks, though the line may run partly. The 1,200-kilometer route had moved 2.6 million to 4 million barrels a day since late August, Rystad Energy said; 4 million barrels is about 4% of global supply, per the IEA. Brent surpassed $109 in some accounts; India Today cited levels above $105. U.S. diesel hit a record average above $6.23 a gallon. Janiv Shah of Rystad called the rise a reaction to "a significant loss of supply." Salvatore Mercogliano said if the pipeline were Saudi Arabia’s only outlet it would be "absolutely cataclysmic," but with Hormuz partly reopened "it's not the death knell for Saudi Arabia. They're getting oil out." Melius Research said "An inflationary spillover is likely" and that Bab el-Mandeb flows are "likely zero now." Houthis claimed a strike on King Khalid Air Base in Khamis Mushait and seized Greater and Lesser Hanish, 160 km north of Bab el-Mandeb, after Saudi-backed forces withdrew; they earlier took Mokha and Mayun. How much oil moves during repairs remains unresolved.