Saudi Aramco Halts Crude Deliveries After East-West Pipeline Attack

Saudi Aramco has suspended crude deliveries to at least two European oil refining customers following an attack on the kingdom's East-West pipeline. The pipeline, which spans across the Arabian Peninsula, was targeted by drones last week, with damage reported at three pumping stations. According to a person familiar with the situation, partial operations are expected to resume within days and full capacity is expected to be restored within six weeks.

The affected customers typically receive Saudi crude through long-term supply agreements, which provide regular monthly deliveries. However, as part of the disruption, those allocations will not be provided next month. European refineries that purchase Saudi crude usually receive shipments through Egypt's Mediterranean port of Sidi Kerir, which is linked to the Red Sea by pipeline infrastructure.

The disruption has prompted some Aramco customers to seek alternative sources of supply. Poland's Orlen SA has issued over 10 tenders since Friday as it looks to secure replacement crude shipments. The attack on the East-West pipeline has added pressure to an already strained global energy market, potentially driving higher fuel prices and contributing to greater volatility in financial markets.