Oil Surges $30/Barrel as Saudi Pipeline Crisis Deepens
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Crude has climbed roughly $30 per barrel since early August as six and a half months of Middle East supply disruptions ripple through gasoline and diesel markets, according to Kpler's Matt Smith. Refinery margins remain stretched even as seasonal demand should be easing.
The situation worsened this week after satellite imagery confirmed three pumping stations on Saudi Arabia's East-West pipeline sustained heavier damage than first reported, threatening the kingdom's key bypass route around the Strait of Hormuz.
Kpler estimates roughly 8.5 million barrels per day of production has been lost during the conflict, keeping diesel crunch fears alive despite offsetting headlines on potential de-escalation.