Saudi Aramco Halts Oil Supplies to Europe After Pipeline Attack
Saudi Aramco has halted crude oil supplies to European customers due to an attack on its main pipeline to the Red Sea, according to a report from Bloomberg News. The decision affects all European buyers and will not occur next month. This is a significant disruption as the East-West Pipeline carries 4 million to 5 million barrels per day to the Red Sea port of Yanbu.
The attack on September 11 damaged three pumping stations, with repair estimates ranging from partial resumption within days to full recovery in five to six weeks. Saudi Arabia shut its East-West pipeline last week after the drone attack and did not immediately respond to a request for comment made outside normal working hours.
The halt will particularly affect European OECD countries, which had been importing 577,000 barrels per day from Saudi Arabia as of June. This represents a significant portion of global oil supply, equivalent to 4%, 5%. The East-West Pipeline has become the kingdom’s critical export lifeline after war in the Gulf effectively closed the Strait of Hormuz.