Saudi Aramco Cuts Off European Refiners from October Crude Allocations

A drone attack on Saudi Arabia's East-West pipeline has caused Saudi Aramco to cut off European refiners from October crude allocations, according to reports. At least two European buyers were informed that their October allocations under long-term supply contracts would be zero.

This disruption comes at a time when oil prices remain elevated and Middle East shipping routes face severe security risks. The pipeline is capable of carrying up to 7 million barrels per day, though recent flows were estimated at around 4 million barrels per day before the outage.

European refiners normally purchase Saudi crude under term contracts designed to provide reliable monthly deliveries. However, with the loss of October cargoes, affected buyers must seek alternative supplies in the spot market.