Saudi oil giant Aramco has canceled a significant portion of its crude oil shipments to Europe planned for the remainder of September, following damage to the East-West Pipeline, The Zioneer reports. The cancellation compounds supply disruptions already affecting global energy markets amid the pipeline shutdown.
Saudi oil giant Aramco has officially canceled a substantial portion of its crude oil shipments to European customers scheduled for the remainder of September, The Zioneer reported Tuesday evening. The cancellation, which follows damage to the East-West Pipeline from drone strikes launched from Iraq, confirms earlier warnings that the supply disruption would extend to European refiners.
The development was preceded by a series of reports earlier on Tuesday. At 19:03 Jerusalem time, The Zioneer reported that Saudi Arabia could cancel crude shipments for both September and October, and shortly thereafter, Reuters reported that Saudi Arabia had begun canceling shipments to European customers. These reports followed the earlier suspension of oil loading operations at the Red Sea port of Yanbu after the pipeline damage, as The Zioneer reported earlier Tuesday. The pipeline—struck multiple times from Iraq over recent days—remains offline, with repair estimates of five to six weeks, according to Reuters reports cited by The Zioneer on Sunday.
The East-West Pipeline is a critical artery that bypasses the Strait of Hormuz, carrying up to 5 million barrels per day. Its shutdown compounds existing disruptions in the region, including the closure of the Strait of Hormuz, which has halted Iranian crude exports entirely, as The Zioneer reported on Thursday, September 3. The cumulative impact has pushed oil prices above $120 per barrel, with analysts warning of further increases.
It remains unclear whether the cancellations will extend into October, as had been anticipated. The extent of the damage and the precise timeline for repairs also remain unconfirmed by Saudi authorities.
3 developments
- StrongAramco shuts down pipeline in Al-Baqi and Riyadh area after Yemeni attack, reports say
- StrongAramco shares slip 1.1% at Saudi market open after pipeline strike
- DevelopingSaudi Arabia halts oil loading at Yanbu port after pipeline damage, Reuters reports
- ConfirmedSaudi Aramco's Jazan refinery shut, repairs expected by August 15 after Houthi strike
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