KATHMANDU. Crude oil prices rose more than 3 percent after the temporary closure of Saudi Arabia’s main oil pipeline.
According to Reuters, the price of Brent crude oil rose $3.21 per barrel to $107.82 a barrel on Monday. The recent attacks by the Houthi rebels in Saudi Arabia and Iranian attacks on ships in the Persian Gulf are the reasons for the rise in oil prices.
Last week, crude oil prices rose nearly 8 percent to over $100 a barrel. This is the first time crude oil prices have reached this level since July.
Following the drone attack, Saudi Arabian authorities have temporarily shut down the country’s east-west oil pipeline. The pipeline provides an alternative route for Saudi Arabia’s oil exports, ignoring the need for crude oil to pass through the Strait of Hormuz.
The closure of the pipeline is expected to affect about 4% of global oil supply. This increased supply concern has directly affected international crude oil prices.
