Europe Seeks Alternatives as Saudi Oil Disruption Continues
Saudi Arabia's oil disruption has prompted European refiners to seek alternatives after Saudi Aramco informed them that deliveries of crude oil would not proceed as planned for next month. The disruption is due to an attack on the kingdom's key East-West pipeline, which was damaged by drone attacks forcing the shutdown and disrupting oil loadings at the Red Sea port of Yanbu.
Aramco has been working to partially restart the pipeline within days and restore it to full capacity within six weeks. To offset reduced shipments through the Red Sea, the company has increased crude exports through the Gulf using ship-to-ship transfers off Oman's Sohar port. Poland's Orlen has already bought North Sea crude to replace disrupted Saudi imports.
The disruption comes amid a surge in crude prices, which have risen about 20 percent this month due to the US-Iran conflict and fighting involving Houthi forces in Yemen. French President Emmanuel Macron announced that France would convene a G7 meeting on energy in the coming weeks to strengthen cooperation and discuss options for releasing strategic reserves.