Oil Holds Gain After Attacks Lower Saudi Production Capacity

Pumpjacks near Three Rivers, Texas, US, on Sunday, March 1, 2026. Oil surged by the most in four years, as the US-Israeli war against Iran plunged the global crude market into turmoil, with the effective closure of the Strait of Hormuz. Photographer: Eddie Seal/Bloomberg Photo by Eddie Seal /BloombergArticle content(Bloomberg) — Oil rose a second day after Saudi Arabia said its production capacity has been reduced due to attacks on energy infrastructure, but futures remain on track for their biggest weekly loss since June.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentBrent climbed to around $96 after adding 1.2% on Thursday in choppy trading, but is still down more than 11% this week after the US and Iran announced a ceasefire on Tuesday.

West Texas Intermediate was near $98 a barrel.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentSaudi Arabia’s press agency said the nation’s production capacity has been cut by around 600,000 barrels a day due to attacks on energy infrastructure. That figure accounts for roughly 10% of the kingdom’s normal crude exports, according to Bloomberg calculations.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentMeanwhile, strikes on a pumping station serving the East-West pipeline — which Saudi Arabia has been using to export crude via the Red Sea — crimped daily throughput by 700,000 barrels this week, according to the report. Kuwait also said it was intercepting drone attacks and that some vital facilities were targeted. Article content“The drop in East-West pipeline throughput weakens Saudi’s Hormuz bypass strategy and highlights persistent supply risks,” said Mohith Velamala, a global oil analyst at BloombergNEF. “This further complicates crude availability in Asia.”Article contentCountries heavily reliant on Middle Eastern supplies, including Japan, have begun tapping inventories. The Asian nation will release about 20 days of oil from its stockpiles in May, Prime Minister Sanae Takaichi said. In China, state refiners were given the green light to tap into commercial reserves, while India’s largest private refiner has started to cap fuel purchases at pumps to manage stocks.Article contentArticle contentUS President Donald Trump said on Thursday he was “very optimistic” about a deal with Iran and Israel was “going to low-key” it with strikes on Tehran-backed Hezbollah militants in Lebanon, although Prime Minister Benjamin Netanyahu reiterated his position that the ongoing attacks weren’t part of the US-Iran ceasefire agreement. Trump later threatened Tehran over charging fees in the Strait of Hormuz. Article content“There are reports that Iran is charging fees to tankers going through the Hormuz Strait,” Trump wrote Thursday on social media. “They better not be and, if they are, they better stop now!”Article contentFocus will now shift to Islamabad, where Vice President JD Vance is expected to lead the US delegation in discussions with Iranian officials on Saturday. A key issue will be the Strait of Hormuz, the near-closure of which since end-February has disrupted a fifth of global oil and liquefied natural gas flows — triggering a severe supply shock. Article contentTrump described Iran’s leaders as “much more reasonable” than their public comments would suggest in a phone interview with NBC News. However, Iran’s new supreme leader, Mojtaba Khamenei, said in a statement on Telegram that Iran “will definitely bring the management of the Strait of Hormuz to a new stage,” though it was unclear if he was referring to past Iranian demands to retain control of the waterway that the US has rejected.Article content“The market is refocusing on the reality of flows through the Strait of Hormuz, which remain far from normalized and are unlikely to snap back quickly,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group.Article contentOil markets have been extremely turbulent since the war began, forcing traders to hold smaller positions for shorter periods as they run into risk limits. Prices have swung by an average of more than $9 a day since the conflict began, the largest daily moves in years.Article content—With assistance from Mia Gindis.Article contentTrending BYD to open 20 car dealerships in Canada this year Autos Why are Canadian bond yields surging? 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Finance Posthaste: How the U.S. dollar stole the Canadian dollar's petrocurrency thunder News 'Time to shift that narrative' — RBC to launch $1-billion fund to help Canadian businesses grow Banking How the global energy crisis is shaking Canada from coast to coast — and could leave a lasting legacy Oil & Gas