U.S. crude oil held above $102 a barrel on Tuesday as markets weighed persistent supply risks in the Middle East against diplomatic efforts aimed at reducing attacks on energy and shipping infrastructure in the Russia-Ukraine war.
West Texas Intermediate futures rose about 1.5% to $102.92 a barrel in early trading, after gaining more than 1% in the previous session. Brent crude climbed 1.3% to $107.05, supported by concerns over disruptions to Middle East oil flows following attacks on Saudi energy infrastructure.
Saudi Pipeline Remains Offline
Supply concerns remain centered on Saudi Arabia after the kingdom shut its East-West Pipeline, also known as Petroline, following drone attacks last week.
The roughly 1,200-kilometer route carries crude from eastern Saudi Arabia to the Red Sea port of Yanbu, allowing the world’s largest oil exporter to bypass the Strait of Hormuz. The pipeline had been moving millions of barrels a day before the shutdown, making it particularly important while tanker traffic through Hormuz remains constrained.
Reports citing regional officials indicate repairs could take three to five weeks, although portions of the system could potentially resume operations earlier.
U.S. Energy Secretary Chris Wright offered a more optimistic assessment Monday, saying he expects the pipeline to return to service soon.
“I think you’ll see the pipeline back running very soon,” Wright told Bloomberg Television, adding that Saudi officials were assessing the extent of the damage and required repairs. The pipeline has capacity to transport about 7 million barrels per day.
Black Sea Diplomacy Offers Counterweight
Diplomatic efforts surrounding Black Sea shipping and energy infrastructure provided a potential counterweight to Middle East supply concerns.
Turkey has been involved in discussions aimed at improving the safety of commercial navigation in the Black Sea and has been working on proposals that could include restrictions on attacks involving energy and port infrastructure. Turkish officials have been in contact with both Russia and Ukraine over maritime security.
The prospect of an arrangement could reduce risks to energy and commodity infrastructure, but no comprehensive ceasefire covering those targets has been confirmed.
Ukraine has said it would stop attacks on Russian energy infrastructure if Russia does the same and credible guarantees are established.
The competing developments leave crude caught between two forces: the possibility of reduced disruption around the Black Sea and continued constraints on Middle Eastern supply routes.
For now, the Saudi pipeline outage remains the more immediate physical supply risk, helping keep WTI above $102 and Brent near $107.
