Saudi Arabia Suspends Oil Deliveries to Europe Amid Pipeline Disruptions

Saudi Arabia is halting crude oil deliveries to European refineries under long-term contracts next month due to disruptions in its East-West pipeline. The suspension affects all European customers and follows damage to the critical infrastructure from a drone attack on September 11.

The East-West pipeline, which carries 4-5% of the world's daily oil supply, is expected to remain largely out of service for several weeks. This has prompted some European companies to quickly find alternative sources, with Polish company Orlen SA launching over ten auctions since Friday to secure new oil volumes.

The decision comes as a significant blow to European refineries, which typically receive Saudi crude from the Egyptian port of Sidi Kerir through pipeline connections to the Red Sea. In June, European OECD member states imported an average of 577,000 barrels of Saudi crude oil per day, according to International Energy Agency data.