Saudi Arabia cancels oil to Poland: only 5 days of reserve left

WHAT HAPPENED

Saudi Arabia suspended oil shipments to Europe after closing a pipeline due to an attack. Poland, one of the affected countries, would have crude for about 5 days. Brent is around $108 per barrel, compared to $70 before the conflict.

WHY IT MATTERS

With Saudi oil missing, European refineries must source it from farther away and likely at a higher cost. If the cut continues, gasoline and diesel prices will rise first; then freight transport and products made with plastic.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, this episode shows how a physical disruption can raise oil prices and pressure sectors that heavily use fuel, such as transport, industry, and consumption. It can also increase everyday inflation.