Saudi Oil Pipeline Attack Could Push Brent Above $150

A drone attack that damaged Saudi Arabia’s Eastern-Western oil pipeline has raised concerns over a major supply disruption, with market speculation that Brent crude could climb above $150 a barrel when trading resumes Monday.

The temporary shutdown has already triggered a sharp rise in oil futures as traders assess the potential impact on global supplies, according to Algerie Eco.

The Eastern-Western pipeline is a strategically important part of Saudi Arabia’s oil infrastructure. Running from the oil-producing Eastern Province to the Red Sea port of Yanbu, the route provides Riyadh with an alternative export channel that avoids the Strait of Hormuz, one of the world’s most important energy chokepoints.

Brent futures reportedly rose by more than 5% following news of the disruption, reflecting growing concern that the outage could remove a significant volume of crude from international markets. Analysts cited by Algerie Eco estimate that a prolonged closure could affect as much as two million barrels per day, potentially placing additional pressure on an already tight supply balance.

The prospect of an extended shutdown has also changed market expectations. Analysts are now considering scenarios in which Brent could approach or exceed $150 a barrel if the disruption continues through the week. Such a price would represent a significant escalation from previous forecasts and would revive concerns over the type of energy-market shock seen during the 2022 crisis.

The pipeline’s strategic importance also adds a geopolitical dimension to the disruption. Built in the early 1980s to diversify Saudi Arabia’s export routes, it reduces the kingdom’s reliance on maritime shipments through the Strait of Hormuz. Damage to the infrastructure therefore raises broader concerns about the vulnerability of critical energy facilities in the Gulf.

For Algeria, higher international oil prices could have implications for export revenues and the country’s position within OPEC discussions. The disruption also reinforces the importance of diversified energy transport infrastructure as producers seek to limit exposure to strategic chokepoints and geopolitical risks.

The immediate direction of Brent will depend heavily on the duration of the Saudi pipeline shutdown and the authorities’ ability to restore exports. A rapid return to normal operations could ease the market reaction, while a prolonged interruption would increase pressure on global crude supplies and prices.