Nigerian Crude Oil Surpasses $115 Amid Saudi Pipeline Crisis

Nigerian crude oil prices exceeded $115 per barrel after an attack led to the closure of Saudi Arabia's East-West pipeline, a critical route for oil transport. Brent crude rose over 3.7% to above $108 per barrel, influenced by macro energy strength and refinery demand for low-sulfur yield.

The closure was a preemptive response to attacks, with Saudi Arabia's crude production already at its lowest since 1990. The geopolitical climate, particularly the US-Iran standoff, has caused crude prices to rise over 75% this year.

The situation has been exacerbated by military actions from Iranian-backed Houthi fighters in Yemen, which threaten shipping routes. Additionally, a postponed meeting between Iran and Persian Gulf states regarding a temporary shipping corridor through Hormuz reflects ongoing tensions.

The global economy faces inflationary pressures due to rising costs of crude and natural gas, with the Federal Reserve expected to raise rates following reports of accelerated inflation in August.