Oil prices surge more than 3pc amid supply concerns — Pajhwok

KABUL (Pajhwok): Global oil prices rose more than 3 percent on Monday amid concerns over supply disruptions following Saudi Arabia’s temporary shutdown of its East-West oil pipeline after a drone attack. Reuters reported that Brent crude futures rose $3.21, or 3.1 percent, to $107.82 a barrel, while US West Texas Intermediate (WTI) crude increased $3.17, or 3.2 percent, to $103.22 a barrel. Saudi Arabia temporarily shut the 1,200-kilometre East-West pipeline following the drone attack. Riyadh and Baghdad said the drones originated in Iraq. The pipeline carries oil from eastern Saudi Arabia to the Red Sea port of Yanbu, providing an alternative export route that bypasses the Strait of Hormuz. According to Reuters, the pipeline transports about 4 million barrels of oil per day, equivalent to up to 4 percent of global oil supply. Saudi Arabia’s oil stocks at Yanbu are estimated to cover exports for only five to seven days if the pipeline remains shut. The disruption comes as oil shipments through the Strait of Hormuz have also fallen sharply amid the ongoing regional conflict. Reuters reported that only four vessels exited the Gulf and 10 entered over the weekend, well below the 10-day average. Oil prices have risen above $100 a barrel in recent days as tensions in the Middle East have intensified and concerns over global supplies have…