Saudi Aramco Cancels Crude Deliveries to Europe Amid Pipeline Shutdown
Saudi Aramco has cancelled or postponed crude oil deliveries to at least three European refineries following the shutdown of the East, West pipeline in Saudi Arabia. The pipeline, which has a capacity of 7 million barrels per day, was attacked on September 10 and has been out of operation ever since.
According to OilPrice, citing market sources quoted by Argus, at least three European refineries received notices that cargoes scheduled for late September had been cancelled or that deliveries had been postponed until November. Another two refiners are awaiting notices regarding September volumes.
The East, West pipeline transports oil from Saudi Arabia's eastern fields to the Red Sea port of Yanbu, providing a route bypassing the Strait of Hormuz. One market source told Argus that the risk could affect all Saudi cargoes scheduled for the final ten days of September. It also estimated oil inventories in Yanbu at approximately five days, although Argus was unable to independently confirm this estimate and Saudi Aramco declined to comment.