Saudi Arabia Cuts Oil Supplies to Europe Amid Houthi Drone Strike

Saudi Arabia has cut off oil supplies to Europe after a drone attack on its East-West pipeline. The move has sent shockwaves through the energy market, with refiners scrambling for alternative sources of crude. Saudi Aramco has informed European term customers that they will receive no crude allocation next month.

The disruption is expected to impact OECD Europe's oil imports, which stood at 577,000 barrels per day in June. Poland's Orlen is already seeking alternative supplies as a result of the cut-off. The move is seen as a response to the drone attack on Riyadh's East-West pipeline, which was forced to shut down due to damage.

The Saudi government is reportedly seeking Beijing's help to restrain the Houthi rebels responsible for the drone strike. It remains to be seen whether China can help reopen the oil lifeline between Riyadh and Europe.