Saudi Pipeline Attack Drives Diesel to Record High

A drone attack has knocked out Saudi Arabia's East-West Pipeline, the kingdom's main workaround for avoiding the Strait of Hormuz, and the line is expected to stay offline for weeks.

Saudi Arabia suspended oil loadings at its Red Sea port of Yanbu on Tuesday after a major refinery there was reported hit, Reuters and The Daily Caller reported.

The squeeze is already landing on American wallets: US diesel hit a record national average on Tuesday, according to Semafor, citing AAA figures of $6.27 a gallon.

The Los Angeles Times reports the escalation leaves the Trump administration in a newly precarious position less than two months before the November midterms.

The Numbers

Experts told BBC Verify the pipeline's closure could cut oil supplies by as much as 3.6 million barrels per day. Since late August the line had been moving between 2.6 million and 4 million barrels a day.

Some physical oil cargoes in Europe topped $130 a barrel on Tuesday, Reuters reported, approaching the record highs set in April as buyers scrambled for alternatives to Middle East supply. Brent crude reached $109.80 a barrel on Monday.

Saudi production had already slid to about 6 million barrels per day in August, down from nearly 10 million a year earlier, according to the International Energy Agency.