Oil prices for Brent crude have risen toward $108 per barrel. This follows the closure of the East-West pipeline in Saudi Arabia, which serves as a major export route that avoids the Strait of Hormuz.
The pipeline has a maximum capacity of 7 million barrels per day. Market analysts expect this shutdown to reduce oil supply in the near term, as the price previously stood at approximately $104.61 per barrel.
The recent price hike keeps Brent crude above the $100 threshold. Market participants are now watching for official updates from Saudi authorities regarding how long the pipeline will remain closed.
Future supply dynamics may depend on potential compensatory actions from other oil producers. Statements from officials like Abdulaziz bin Salman Al Saud and OPEC representative Mohammad Sanusi Barkindo remain key indicators.
