Saudi Aramco Cuts Crude Supplies to Europe Amid Pipeline Damage
Saudi Aramco is halting crude supplies to at least two European refiners next month under long-term contracts, according to Bloomberg. This move comes after a drone strike damaged a key pipeline carrying Saudi oil to Europe via the Red Sea.
The disrupted pipeline affects not just these two refineries but all European buyers of Saudi Aramco's crude. The decision has prompted European oil companies like Poland's Orlen SA to look for alternative sources, with CEO Ireneusz Fafara stating they have excellent relations with Aramco and are seeking new supplies.
The supply disruption is part of a larger issue affecting Saudi Arabia's oil production, which fell by 1.9 million barrels per day last month to 6.238 million barrels per day - the kingdom's lowest level since 1990, according to OPEC's monthly report.