Saudi Arabia shuts East-West pipeline that bypasses Hormuz after attacks
Move is likely to put further momentum behind fast-rising oil prices
Source: Financial Times
―
DW NOTE
Saudi Arabia's backup plan for Hormuz closure has now failed. The East-West pipeline was the kingdom's only route to export crude without crossing the Strait — capacity roughly 5 million barrels per day. If it's shut after attacks, that crude has nowhere to go except storage. WTI at $99.76 understates the problem: the market is pricing supply risk, not the reality that swing capacity is now offline and inventories are already falling 3 million barrels per day.