Oil rises above $108 as attacks, pipeline outage deepen Saudi supply concerns

Business Recorder reported that oil prices advanced by more than 2% on Tuesday, after attacks on Saudi energy facilities took the East-West pipeline offline. Brent was quoted at $108.18 a barrel at 0813 GMT, a gain of $2.5, while US West Texas Intermediate stood near $103.85. Concern is growing that repairs could take longer than expected.

The latest strikes followed Houthi missile and drone attacks on a Saudi air base at Khamis Mushait on Monday, which the group described as retaliation for Saudi airstrikes in Yemen. Earlier attacks on Friday, which Riyadh blamed on Iranian-backed fighters in Iraq, had already disrupted the pipeline that lets crude bypass the blockaded Strait of Hormuz. According to buyers and traders, the kingdom's export crude could be depleted in a few days if the line stays shut.

Goldman Sachs noted repairs could be finished immediately or take as long as eight weeks. In a scenario it outlined, Brent climbs past $120 if Gulf output in 2027 is still 4 million barrels a day beneath pre-war levels. Capital Economics' Hamad Hussain added that several weeks of pipeline closure, without a demand adjustment or extra Hormuz flows, could push Brent towards $130 a barrel.