Oil Hits $109/Bbl As Photos Show Major Damage To Saudi Pipeline

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Anonymous officials in the region told the AP that repairing damage from the attacks, which the Saudi government has blamed on Iran-backed militias based in Iraq,“could take three to five weeks, including at a major pumping facility.”The Guardian reported Monday that“Saudi Arabia will run out of oil ⁠stocks for export” if the pipeline isn't repaired within days, which could lead to“the loss of up to 4% of global supply.”

Satellite photos published on Sunday showed extensive fire damage suffered by a pumping station connected to the pipeline. Saudi Arabia had been using the pipeline to divert oil supplies to the Red Sea and away from the Strait of Hormuz, which has been mostly closed to commercial shipping traffic since President Donald Trump launched a war against Iran in February.

In a news analysis published Monday, Bloomberg's Alex Longley noted that damage to the pipeline couldn't come at a worse time for global energy markets, which have already been under strain for months thanks to both the Iran War and continued fighting between Russia and Ukraine.

“Whatever happens, the oil market will need a quick fix,” Longley wrote of the pipeline's closure.“It's currently screaming for barrels.”

Even if the pipeline were repaired quickly, it would not bring immediate relief to global energy prices, given that the Strait of Hormuz remains closed, Houthi fighters in recent days have ramped up their campaign to disrupt oil shipments through the Red Sea, and Trump's refusal to forge a diplomatic solution with the Iranians continues with no end in sight.