Crude Oil Rises for 2nd Session

Crude oil rose past $105 per barrel on Tuesday, the highest in over four months, on mounting curbs to supply from the Middle East and fresh setbacks on Libyan output. Saudi Arabia closed its East-West pipeline following attacks from Iraqi territory. The strikes suspended activity in infrastructure that was allocating 7 million barrels per day of Saudi oil to the Red Sea, an alternative to halted shipments through the Persian Gulf due to the Iranian blockade on tankers. The prolonged halt of tanker flows from the region forced major OPEC members to cut oil production, with Saudi output recently dropping to its lowest since 1990. Meanwhile, Libya suspended activity in several oil fields and warned it could declare force majeure as protests by the Petroleum Facilities Guard shut off the Hamada-Zawiya crude-loading pipeline. Dwindling stockpiles of oil in China drove the major importer to raise orders in August, while the US SPR stands at a near record low.

Crude Oil increased to 104.98 USD/Bbl, the highest since May 2026. Over the past 4 weeks, Crude Oil gained 24.04%, and in the last 12 months, it increased 62.46%.

Crude oil rose to around $103.50 a barrel on Tuesday, the highest since May 19, following a 1.3% gain in the previous session, as supply disruptions in the Middle East outweighed signs of progress towards a Russia-Ukraine energy truce. Market concerns remain focused on Saudi Arabia, where the East-West pipeline has been shut, removing an important alternative route for exporting crude without relying on the Strait of Hormuz. Riyadh is reportedly seeking to increase shipments through the strategic waterway while the pipeline remains offline, although repairs could take several weeks. US Energy Secretary Chris Wright has indicated that he expects the pipeline to resume operations soon. Meanwhile, diplomatic efforts are gaining momentum elsewhere. US President Donald Trump announced a truce on strikes on Russia and Ukraine's energy facilities, while Turkey is seeking to broker an agreement between Kyiv and Moscow to end attacks on Black Sea shipping.