Saudi Aramco Halts Oil Deliveries Amid Pipeline Attack Fallout
Saudi Aramco has suspended crude oil deliveries to multiple European refineries after drone attacks damaged its East-West pipeline, which carries 2.6-4 million barrels of crude per day. The pipeline, also known as the Petroline, was shut down as a precaution following the September 10 drone strikes.
At least three European refiners have been notified that their September oil shipments from Saudi Aramco are canceled or delayed. No crude has left the Yanbu export terminal on the Red Sea coast since September 11, and the terminal holds only about five days' worth of inventory.
The East-West pipeline's shutdown has led to a surge in Brent crude futures prices, reaching near $108 per barrel. Physical European cargo prices have climbed even higher, reaching approximately $122 per barrel as refiners compete for dwindling spot supplies.