Saudi Oil Cuts Hit Europe Amid Pipeline Damage

Saudi Arabia has significantly reduced its oil supplies to Europe due to damage to the East-West pipeline, which bypasses the Strait of Hormuz. According to Reuters, sources among oil traders reported that Saudi Arabia notified European customers about the cancellation of some crude oil deliveries scheduled for September.

The reduction in supply has led to a surge in demand for alternative suppliers, with major buyers such as Poland urgently looking for new sources. The cost of individual oil cargoes has exceeded $120 per barrel as a result.

To compensate for the reduced Red Sea shipments, Saudi Arabia may increase its export volumes through the Strait of Hormuz, including so-called 'shadow deliveries' already used by the UAE and Iraq.