Global Crude Surges Past 108 Dollars Amid Middle East Infrastructure Attacks and Refined Product Deficits While crude oil flows stabilize, refined products such as diesel face severe shortages, leaving commercial reserves severely depleted. Brent crude prices fluctuated during the latest session, initially weakening toward the 103,00 level, thereby partially erasing previous gains and dropping back below the 20-day simple moving average (SMA), before jumping back above the 108,00 threshold Kurzy.cz. This movement reflects a short-term consolidation phase between 100,00 and 108,00, while geopolitical risks and infrastructure disruptions continue to strain global markets Kurzy.cz. From a broader short-term perspective, Brent has been moving mostly sideways for approximately ten trading sessions Kurzy.cz.
Attacks on Khurais Pumping Station Halt Oil Flow
The flow of oil through Saudi Arabia’s East-West pipeline stopped again following another attack on the crucial energy infrastructure Echo24. According to an energy sector source speaking to AFP, the pumping station in Khurais east of Riyadh was targeted, causing extensive damage and halting the pipeline Echo24. The East-West pipeline serves as an alternative route to transport oil to the Red Sea without relying on the Strait of Hormuz Echo24. Meanwhile, regional conflict began with US-Israeli strikes on Iran on February 28, prompting Tehran to severely restrict maritime traffic through the Strait of Hormuz Patria. Tanker traffic and shipping faced repeated attacks, and the US initiated a naval blockade in April Patria. Both countries repeatedly intervened militarily against vessels that did not respect their blockades during various phases of the conflict Patria.
Supply Pressures Grow as Global Oil Reserves Deplete
Saudi Aramco Chief Executive Amin Nasser stated at an energy conference in London that the pressure on supply and demand will continue to escalate until the Strait of Hormuz fully opens and confidence is restored Patria. Nasser noted that nearly three billion barrels of oil have vanished from the market since the conflict began, while approximately one billion barrels were released from stockpiles Patria. With commercial reserves heavily drawn down, the remaining six billion barrels in reserves are practically inaccessible, and replenishing depleted global inventories could take up to two years Patria. Data from Kpler showed that Middle East crude exports rose to 12.8 million barrels per day in September, driven by Saudi Arabia and the United Arab Emirates as shipments through the Strait of Hormuz partially recovered Patria. This represented the highest level since the Middle East war began in late February Patria.
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