Saudi Arabia Blocks Oil Shipments to Europe Amid Pipeline Disruptions

Saudi Arabia's state-owned energy giant, Saudi Aramco, has told European refiners that they will not receive any crude oil in October due to ongoing supply disruptions. The decision applies to all European customers and extends a previous cancellation of September shipments.

The East-West Pipeline, which connects Saudi Arabia's main eastern oil fields with Yanbu, was damaged by drone strikes in recent weeks. The pipeline had been rerouting around 4 million barrels per day (bpd), or about 4% of global supply, to bypass the Strait of Hormuz.

The supply squeeze has forced European refiners to seek alternative suppliers. Poland's state-controlled energy giant, Orlen, said it secured additional cargoes from Norway, Britain, Algeria, Kazakhstan, Azerbaijan, and the Americas to cover Saudi disruptions through November.