Brent crude rose by more than 14% in September after a drone attack on Saudi Arabia’s East-West pipeline

Oil prices surged in September after a drone attack on Saudi Arabia’s strategic East-West pipeline, an incident that heightened fears of another major disruption to global crude oil supplies.

Brent crude oil futures, the international benchmark, have risen by more than 14% this month and are trading near $104 per barrel. U.S. West Texas Intermediate (WTI) crude has increased by more than 6%, surpassing $91 per barrel.

Saudi Arabia shut down the East-West pipeline on September 10 after it was damaged in a drone attack launched from Iraq. The pipeline transports oil to the Red Sea coast and plays an important role in Saudi exports.

Meanwhile, oil loadings for export at the port of Yanbu have increased, signaling the resumption of flows and the pipeline’s return to operation. WTI is nevertheless trading at a larger discount to Brent amid discussions about a possible ban on U.S. diesel exports. The measure could reduce U.S. refinery output and, consequently, demand for crude oil.