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Oil tanker at sea as crude prices surge on Middle East supply disruption fears
Photo: Euronews

Brent Crude Falls 4.9% to $98.94 on Saudi Pipeline Restart

Euronews2 min read6 sources

Why is oil falling today?

Brent crude (LCOc1) fell 4.9% to $98.94 on Friday as Saudi Arabia accelerated East-West pipeline repairs, erasing the supply premium built since drone strikes shut the route last week.

Key numbers

Brent crude close (Sep 18)$98.94/bbl-4.9% on the day
Brent weekly high (Sep 15)$108.38/bbl-8.7% from peak to Friday close
East-West pipeline flow at risk~4 million bpd~4% of global daily supply
Partial pipeline restoration target~50% of capacitywithin days, per Saudi Aramco
WTI crude (Sep 18)~$100.08/bbl-1.8%; briefly dipped below $100
Saudi Aramco stock (2222.SR)25.56 SAR-0.2% on the day

What happened

Brent crude (LCOc1) fell 4.9% to $98.94 on Friday as Saudi Arabia accelerated East-West pipeline repairs, erasing the supply premium built since drone strikes shut the route last week. The pipeline carries about 4 million barrels a day — roughly 4% of global supply — and was shut after Iran-backed drone strikes hit Saudi pumping stations on September 10, sending Brent from $96 to a weekly high of $108.38. Saudi Arabia said it could restore half the flow within days and set up a ship-to-ship transfer program off Oman's coast to keep exports moving. Those two moves reversed the week's energy rally in three sessions, leaving oil down 8.7% from its Tuesday peak.

Why it matters

Oil prices surged earlier this week because markets feared a prolonged cut in Saudi crude exports, but that fear has mostly evaporated as repairs moved faster than initially expected. Lower oil prices mean cheaper petrol for drivers and lower jet-fuel costs for airlines, but they are bad news for energy investors who had bought into the supply-shock trade. The episode shows how fast oil markets can swing when a key supply route finds a workaround — even in an active conflict zone.

Who this affects

Marketbearish
High impact
Energy stocks reversed sharply; the week's only winning sector erased.
Companymixed
Medium impact
Saudi Aramco exports recover but lower crude prices cut revenue.
Competitorsbearish
Medium impact
BP, Shell, and Exxon face lower crude revenue as supply fears ease.
Industrybearish
High impact
Global oil supply fears ease; Iran-war tanker premium evaporates.

Brent Crude vs WTI Crude, Saudi Aramco

Brent CrudeLCOc1$98.94/bbl-4.9%-5.4%+63%
WTI CrudeCLc1$100.08/bbl-1.8%+1.2%—
Saudi Aramco2222.SR25.56 SAR-0.2%——

As of 2026-09-18

How we got here

  1. US strikes three Iranian tankers under 'tanker for tanker' policy; Brent at $96.28.

  2. Iran-backed drones hit Saudi East-West pipeline stations; Brent spikes 6.5% to $108.73.

  3. Saudi Arabia shuts entire East-West pipeline; Yanbu Red Sea terminal halts crude loadings.

  4. Brent peaks at $108.38 close; full pipeline shutdown keeps supply fears at maximum.

  5. Saudi Arabia pledges 50% pipeline restoration within days; Brent falls 2.6%.

  6. Brent closes at $98.94, below $100; week's energy rally fully erased.

What to watch

  • East-West pipeline 50% restart — Saudi Aramco pledged within days of Sep 16.2026-09-22
  • New Iranian or Houthi drone strikes on Saudi infrastructure could quickly reverse the drop.2026-09-25
  • US-Iran tanker confrontation: next US Navy patrol and Iran's possible escalation.Q4 2026

Educational content only. Not investment advice.

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