Dao Securities reports that Saudi Arabia announced the closure of the East-West pipeline on September 11, 2026, following a drone attack launched from Iraq. Saudi Arabia did not provide details on the extent of the damage or how long the pipeline would be shut, and sources gave differing accounts, with one saying repairs could take 5-6 weeks, while another said it could be faster and that partial pumping could resume during repairs. Saudi Arabia has used this pipeline to transport 4.0 million barrels per day, or about 4% of global oil supply, to the Yanbu port on the Red Sea to reduce the impact of a Strait of Hormuz closure. But with the pipeline out of service, Yanbu will have enough oil in stock for only 5-7 days of exports, with storage capacity of 35.0 million barrels. Meanwhile, the Houthis have seized Saudi Arabia's Perim and Hanish islands, as well as the cities of Mokha and Dubab, which could tighten their control over Red Sea shipping routes. Separately, the Energy Policy Administration Committee, or EPPO, announced an extension of refinery price cuts for B0, B7 and B20 diesel from September 16, 2026 to October 31, 2026, a further 46 days. This morning, Brent crude futures rose to around 107.0-108.0 dollars per barrel, from 104.6 dollars per barrel last Friday. Dao Securities maintained its average Dubai oil price assumption for 2026 at 85.0 dollars per barrel, kept its equal-weight investment stance on the energy sector, and views this news as a positive factor for upstream energy stocks, favoring PTTEP with a target price of 180.00 baht on expectations of higher average selling prices for oil.
PTT Exploration and Production Public Company LimitedPipeline shutdown from drone attack tightens oil supply and lifts prices, which Dao says raises PTTEP's average selling prices; it favors PTTEP with a 180 baht target.
Saudi pipeline closure after the drone attack cuts ~4% of global supply, driving Brent futures up from 104.6 to around 107-108 dollars.
Loss of the 4.0 million bpd East-West pipeline removes ~4% of global oil supply, pushing crude prices higher (Brent up to ~107-108).
