Oil Prices Rise Amid Saudi Production Cuts and US-Iran Talks
Crude rises 1% as Saudi output hit, markets eye US-Iran talks
Mint
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Global oil prices increased by nearly 1% following attacks on Saudi Arabia's East-West pipeline, which reduced oil production capacity by approximately 600,000 barrels per day. Investors are closely monitoring upcoming ceasefire talks between the US and Iran, which may impact market stability.
- 01Saudi Arabia's oil production capacity reduced by 600,000 barrels per day due to pipeline attacks.
- 02Brent crude traded at $96.65, while West Texas Intermediate reached $98.84 per barrel.
- 03The East-West Pipeline is crucial for bypassing the Strait of Hormuz, with a capacity of 7 million barrels per day.
- 04Concerns over navigation rights in the Strait of Hormuz are affecting investor sentiment.
- 05The Indian crude basket price stands at $115.52 per barrel.
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Global oil prices saw a nearly 1% increase on Friday morning, driven by attacks on Saudi Arabia's East-West pipeline and crude-producing facilities, which have diminished the kingdom's oil production capacity by about 600,000 barrels per day. The June contract for Brent crude was trading at $96.65, while West Texas Intermediate rose to $98.84 per barrel. The East-West Pipeline, a vital route for transporting crude oil from Saudi Arabia's Eastern Province to the Red Sea port of Yanbu, has a capacity of up to 7 million barrels per day. This development is particularly significant for India, as the pipeline was considered an alternative route for sourcing crude oil. Investor sentiment remains cautious as they await ceasefire talks between the US and Iran, with concerns over the Strait of Hormuz's navigation rights influencing market stability. The Indian crude basket price is currently at $115.52 per barrel.
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The reduction in Saudi oil production could lead to higher fuel prices in India, affecting consumers and businesses reliant on oil.
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