Crude Oil Prices Rise as Attacks on Saudi Infrastructure Exacerbate Supply Concerns
Crude oil prices rose on Friday amid concerns about recent attacks on energy infrastructure in Saudi Arabia and its impact on global supply.Brent crude at last look gained 1% to US$96.89/barrel and West Texas Intermediate crude climbed 0.9% to $98.83/barrel. Prices are still expected to record weekly losses amid market optimism about the ceasefire between the U.S. and Iran and Israel signaling a potential diplomatic opening, Reuters said in a Friday report.Attacks on Saudi facilities have cut its oil production capacity by about 600,000 barrels per day and throughput on the East-West Pipeline by about 700,000 bpd, Saudi state news agency SPA reported, citing an official source at the Ministry of Energy.Meanwhile, traffic through the Strait of Hormuz was well below 10% of normal volumes on Thursday despite the ceasefire, Reuters reported.Mukesh Sahdev, founder & CEO of energy consultancy XAnalysts, said in the Reuters report that the "key variable now is how flows through the Strait of Hormuz actually resume - not whether they reopen."
