Saudi pipeline closure is a brief interruption that will last days, U.S. Energy secretary tells CNBC
The Saudis closed the East-West pipeline after it sustained damage in a drone attack launched from Iraq.
TL;DR
- Saudi Arabia's East-West crude oil pipeline is set to reopen soon after being shut down due to Iran-backed drone attacks.
- U.S. Energy Secretary Chris Wright believes the interruption will be brief, lasting only a few days.
- Satellite imagery suggests extensive damage to a pumping station, potentially requiring months for repair.
- The pipeline's closure has contributed to a more than 5% rise in U.S. crude oil prices.
- Saudi Arabia has relied on this pipeline to shift exports to the Red Sea amid tensions over the Strait of Hormuz.
- A month-long closure could result in a loss of 120 million barrels of oil.