European Refineries Face Oil Shortage as Saudi Aramco Halts Deliveries

Saudi Arabia's state oil company Saudi Aramco has informed European refineries that they will not receive crude oil under long-term contracts in October.

This decision affects all European buyers, including those who typically receive oil from the Red Sea port via the Egyptian pipeline to the Mediterranean port of Sidi Kerir.

The shortage arose after a drone damaged a Saudi Aramco pipeline near the Red Sea last week. As a result, the Strait of Hormuz on the opposite side of the country remains blocked.

The absence of Saudi oil in October may force European refineries to seek alternative sources of raw materials, potentially leading to further price increases.