Oil prices rose again as the outage on Saudi Arabia’s east-west pipeline continued and fresh attacks deepened supply concerns (Express Tribune).
Where the price has come from
| | Brent | |—|—| | 8 September | about $99 | | 12 September | about $105 | | 14 September | $107.82 (+3.1pc) |
Why the pipeline is the variable that matters
The east-west line runs roughly 1,200km from Abqaiq on the Gulf to Yanbu on the Red Sea, and normally moves about four million barrels a day. It exists precisely so crude can leave Saudi Arabia without passing through the Strait of Hormuz.
With Hormuz restricted since 28 February and shipping there under attack, the pipeline was the alternative. It has now been struck twice in a week.
That is why this outage moves the price more than an equivalent loss elsewhere would. It is not a reduction in supply so much as the removal of the contingency plan.
What it reaches here
Petrol in Pakistan rose Rs4.42 to Rs380.24 today and diesel Rs6.10 to Rs409.42, ending a two-day pause. Petrol is up Rs34.37 since 7 September.
The State Bank held its policy rate at 11.5 percent on the same day, forecasting inflation back to 5-7 percent by June 2027 — a path that requires this shock to unwind.
What is not established
No figure has been published for how much capacity is offline, how badly the pipeline is damaged, or when it will be restored. Saudi Arabia has not said whether it can reroute the affected volumes, and no production data has been released.
[Image: The Express Tribune]
