WTI crude reversed sharply lower on Friday even after projectiles struck Saudi Arabia's east-west oil pipeline, a move that may signal the news was already priced in or that sellers found a technical level to defend. Brent still touched $105 a barrel as the attack raised fresh doubts over Saudi export capacity, while Riyadh's crude output has already sunk to its lowest level since 1990.
WTI crude reached a high of $104.46 before reversing to $98.48 and settling near the psychologically important $100 level. That reversal came even as CNN reported that projectiles struck Saudi Arabia's east-west oil pipeline system, triggering fires at pump stations beside the line.
The extent of the damage remains unclear. Separately, one U.S. official said the drones involved originated from Iraq, a detail distinct from the suspected Houthi strike that oilprice.com linked to the same pipeline, where satellite imagery from Sentinel and NASA showed active fires and thermal anomalies.
Pipeline threat clouds Saudi export capacity
The East-West pipeline moves 7 million barrels a day, and potential damage to it puts 3 to 4 million barrels a day of Saudi crude exports at risk. ICE Brent traded at $105 a barrel, with Middle Eastern grades Murban and Oman near $120, though a weekend meeting of Gulf foreign ministers has cooled the rally somewhat.
A separate diplomatic push preceded the disruption. Saudi Crown Prince Mohammed bin Salman reportedly urged President Trump to authorize military strikes against the Houthis as they advanced along Yemen's Red Sea coast. Trump declined to commit U.S. forces directly but agreed to provide intelligence and targeting support, according to Reuters.
Output already at its lowest since 1990
Saudi Arabia's own production has been sliding well before this week's attack. Crude output fell to 6.24 million barrels a day in August, down 1.9 million barrels a day from July and the lowest since 1990, as renewed Houthi-driven disruptions cut exports by roughly a third.
Technical levels traders are watching
WTI's failure to hold Friday's gains carries its own signal. Today's high of $104.46 came within $0.75 of the May 18 high of $105.21, and sellers leaned against that level to push the price back down. The decline also took WTI back below the 61.8% retracement of the move down from the 2026 high, a failed break that can turn disappointed buyers into sellers.
WTI at $99.59 still sits above the next support area between $97.00 and $97.79, with the rising 100-hour moving average at $96.28 just below that. Holding both levels keeps buyers in control; a break and close below them would hand sellers the advantage. Separately, the White House is reportedly weighing use of the Defense Production Act to expand U.S. refining capacity amid the fuel price spikes.
Sources: Investinglive RSS Breaking News Feed, Oilprice.com
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