Saudi Arabia has begun canceling crude oil shipments to European customers, according to a Reuters report. The cancellation follows damage to the kingdom's oil infrastructure from recent drone attacks, which have forced the continued shutdown of the East-West Pipeline connecting the Gulf to the Red Sea. The shutdown raises concern over European supply shortages and price spikes ahead of winter.
Saudi Arabia has canceled crude oil shipments to European customers after drone attacks crippled its East-West Pipeline, according to a Reuters report. The pipeline, capable of transporting roughly 210 million barrels per month to the Red Sea port of Yanbu, remains shut following a series of strikes launched from Iraqi territory.
As The Zioneer has reported, the pipeline suffered damage at key pumping stations including Al-Dhekraa and Al-Misbaah in strikes attributed to Iranian-backed militias. Saudi Arabia initially withheld retaliation at Baghdad's request. Repair estimates from Reuters earlier this month suggested the work could take five to six weeks, potentially removing 4% of global oil supply from the market.
The cancellation of European shipments marks the most concrete supply disruption since the attacks began. The Saudi Energy Ministry has not yet issued an official statement on the suspension. If the pipeline remains inoperative, the kingdom's ability to bypass the Strait of Hormuz for exports will remain severely limited, with particular impact on European buyers already contending with tight energy markets.
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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