Saudi Aramco Halts October Crude Supply to Europe After Pipeline Attack
Saudi Aramco has notified at least two European refiners that it will suspend crude oil supply for next month, citing a drone attack on its major pipeline to the Red Sea. The East-West Pipeline, which spans approximately 1,200 kilometers and has a transport capacity of 4-5 million barrels per day, was damaged in the September 11 attack.
The pipeline is crucial for Saudi Arabia's crude exports, representing around 4-5% of global oil supply. It transports crude to Yanbu Port on the Red Sea coast before being delivered to Europe through the Sidi Kerir Port on Egypt's Mediterranean coast.
European refiners typically procure Saudi crude under long-term contracts that guarantee stable monthly supply. However, with this suspension, they will be forced to seek alternative sourcing, likely switching to North Sea crude or West African crude, or securing additional volumes on the spot market.