Oil prices moved higher on Tuesday as fresh supply concerns emerged from both Libya and Saudi Arabia.
Libya’s National Oil Corporation said operations had been suspended at three oil fields, while markets also remained focused on disruptions to a major Saudi crude pipeline.
By 09:45 ET, benchmark Brent crude futures rose 1.7% to $107.59 per barrel, while West Texas Intermediate gained 2.2% to $103.59.
Libya Oil Disruptions Raise Supply Concerns
Libya’s National Oil Corporation said members of the Petroleum Facilities Guard closed a valve on the important Hamada-Zawiya crude pipeline.
The pipeline plays a key role in transporting oil for export.
The NOC warned that it could declare force majeure if the valve remains closed or if additional oil fields are forced to suspend operations.
Libya has repeatedly experienced oil production disruptions for political and technical reasons since the 2011 uprising that removed former leader Muammar Gaddafi.
Saudi Pipeline Outage Adds to Oil Market Pressure
Supply concerns are also growing in Saudi Arabia following attacks on a major east-west oil pipeline.
Iran-backed Houthi forces in Yemen launched another wave of attacks and were reportedly attempting to strengthen their positions near the Red Sea.
Saudi authorities are now assessing how to respond to the increased military activity.
Emergency alerts were also triggered at a military airbase in Khamis Mushait following drone and missile attacks.
Key Saudi Oil Route Could Remain Offline for Weeks
The east-west pipeline has become especially important for Saudi oil exports after flows through the Strait of Hormuz were heavily disrupted.
The pipeline was recently damaged in attacks and could remain offline for three to five weeks while repairs are completed.
Damage reportedly affected a critical pumping station.
Partial operations may resume during the repair period, although the volume of oil that could continue flowing remains uncertain.
Global Oil Supply Faces Further Disruption
The Saudi pipeline has carried between 2.6 million and 4 million barrels per day since late August.
A prolonged outage could disrupt as much as 4% of global oil supply, according to market estimates.
Recent attacks have also raised fears that an additional 4% to 5% of worldwide supply could face disruption if the conflict expands further.
These concerns have helped keep oil prices elevated.
Middle East Tensions Support Crude Prices
Oil markets are also reacting to fading hopes for a diplomatic breakthrough in the Middle East.
A planned meeting between Iran and Gulf countries in Oman over the Strait of Hormuz was postponed.
The talks had initially been expected to take place on Monday.
Tehran said the delay came at Saudi Arabia’s request.
Meanwhile, US President Donald Trump has continued to argue that Iran is interested in reaching an agreement to end hostilities. Iranian officials have rejected that claim.
Strait of Hormuz Remains Critical to Global Oil Supply
Before the conflict between the United States and Iran began, the Strait of Hormuz handled roughly one-fifth of global oil supply.
However, crude flows through the waterway have since fallen sharply.
The reduction has increased the importance of alternative routes, including Saudi Arabia’s east-west pipeline.
As a result, disruptions in both Libya and Saudi Arabia are adding further pressure to already tight global oil markets.
