Concerns Grow Over Saudi Supply Disruptions; Global Oil Prices Hit Highest Since May 19

▲ A satellite image showing the Saudi East-West Pipeline

Global oil prices surged on the 15th (local time), reaching their highest level in about four months.

On this day, November delivery Brent crude futures on the London ICE Futures Exchange closed up 2.90% from the previous session at $108.75 per barrel.

On the New York Mercantile Exchange, October delivery West Texas Intermediate (WTI) futures finished trading up 4.38% from the previous session at $105.83 per barrel.

Both Brent and WTI reached their highest prices since May 19.

Concerns over supply disruptions intensified following the closure of Saudi Arabia's East-West Pipeline and the halt of operations at three oil fields in Libya.

In Saudi Arabia, the East-West Pipeline, which had served as a detour route due to the closure of the Strait of Hormuz, was attacked by Yemen's pro-Iran Houthi rebels, and crude loading operations at the Red Sea export terminal of Yanbu were also suspended.

As the Saudi government notified some European clients of the cancellation of crude cargo deliveries scheduled for the end of this month, fears grew that supply disruptions would be prolonged.

Consequently, expectations that European refiners would seek alternatives such as U.S. crude appear to have drawn buying pressure into WTI futures, causing them to rise relatively more steeply.

In addition, Libya's National Oil Corporation (NOC) announced on the same day that operations at three oil fields were halted after members of the Petroleum Facilities Guard (PFG), who protect oil infrastructure, closed valves on pipelines used for crude loading.

Goldman Sachs analyzed in a report that the escalation of conflict through attacks on oil infrastructure has significantly raised tension levels, and warned that if the average crude production in the Gulf region through 2027 remains 4 million barrels per day lower than pre-war levels, Brent crude is increasingly likely to surpass $120 per barrel.

(Photo: AP, Yonhap News)

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