Saudi Arabia has canceled oil shipments to Europe following ongoing Houthi attacks on its energy infrastructure, with October deliveries also expected to be scrapped, according to reports. The move is expected to trigger a sharp rise in global oil prices.
Saudi Arabia has canceled oil shipments to Europe and October deliveries are also expected to be scrapped, according to sources monitored by The Zioneer. The move comes as the Iran-backed Houthi movement continues its campaign against Saudi energy infrastructure, now escalating to disrupt exports beyond September.
Earlier Tuesday evening (19:10 Jerusalem), The Zioneer first reported that Saudi Arabia had halted oil loading at the Yanbu Red Sea terminal after damage to the East-West Pipeline, based on Reuters. In a subsequent update at the same time, The Zioneer reported that Saudi authorities had informed European customers that crude shipments planned for late September would be canceled. Tonight's disclosure that October shipments are also expected to be canceled marks a further escalation of the disruption.
As The Zioneer has previously reported, Houthi forces have repeatedly struck Saudi airports and refineries, wounding dozens of civilians (Sep 8, 10:24 Jerusalem), and have also targeted infrastructure in the UAE (Aug 18, 18:03 Jerusalem). The damage to the East-West Pipeline, a critical bypass for the Strait of Hormuz, compounds existing Houthi restrictions in the Bab el-Mandeb, threatening a global oil supply crisis.
The full extent of the cancellations and their long-term impact on European energy supplies remain unconfirmed. Analysts have warned that Brent crude could exceed $120 per barrel if disruptions continue.
3 developments
- StrongSaudi Aramco halts crude oil supply to Europe for October, extending pipeline damage disruptions
- StrongAramco cancels September crude shipments to Europe after pipeline damage
- DevelopingSaudi Arabia closes several airports over Houthi escalation fears, analyst says
- DevelopingState of alert declared at all Saudi airports amid Houthi attack fears
Source and signal
- Open-source intake