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Saudi Oil Pipeline Hit: Critical Update as Oil Prices Fall | Shyok Times

Saudi oil pipeline disruptions continued to raise concerns over global energy supplies on Wednesday, but crude prices eased after Saudi Arabia increased oil shipments through Oman to offset the impact of damage to its East-West Pipeline.

Brent crude settled at $105.83 a barrel, down 2.7%, while U.S. West Texas Intermediate (WTI) fell 3.2% to $102.43 a barrel, according to Reuters. The decline followed reports that Saudi Arabia was offering additional crude cargoes to Asian refiners through ship-to-ship transfers near Oman’s Sohar port.

The Saudi oil pipeline, which connects the kingdom’s eastern oil fields with the Red Sea port of Yanbu, is a strategically important route because it allows Saudi crude to bypass the Strait of Hormuz. The pipeline was shut after drone attacks caused significant damage to a pumping station.

Satellite imagery reviewed following the attacks showed extensive damage at the facility. While U.S. Energy Secretary Chris Wright described the disruption as temporary and expected operations to resume within days, independent analysts have warned that repairs could take considerably longer.

Saudi Arabia has responded by increasing crude loadings from Gulf ports and arranging alternative shipments through Oman. Reuters reported that four very large crude carriers, each capable of carrying about two million barrels, were observed loading at Ras Tanura and Juaymah.

The market was also pressured by U.S. inventory data. The U.S. Energy Information Administration reported commercial crude inventories of about 423.4 million barrels for the week ending September 11, while total crude stocks including the Strategic Petroleum Reserve stood at about 708.4 million barrels.

Despite Wednesday’s decline, oil markets remain sensitive to developments around Saudi export infrastructure, the Strait of Hormuz and the wider Middle East conflict.

For more coverage of international developments and energy markets, visit the Shyok Times News Desk.

External Resources (DoFollow):

Follow more on Reuters: Oil slips as Saudi Arabia offers more crude via Oman
Read further at BBC: How escalating Saudi oil crisis could drive up prices
Keep reading via CNBC: Prices fall after U.S. says Saudi pipeline will restore soon