Saudi Oil Deliveries Halted Amid Pipeline Attack
Saudi Arabia has announced it will halt oil deliveries to all European buyers starting next month, according to Bloomberg. The decision comes after an attack on a key pipeline in Saudi Arabia, which was forced to temporarily shut down due to drone and missile strikes.
The East-West pipeline, which allows Saudi Arabia to export oil while bypassing the Strait of Hormuz, is expected to resume operations within two weeks. However, the closure has already triggered panic buying among some of Saudi Aramco's customers in Europe.
European refineries normally receive Saudi crude via the Egyptian Mediterranean port of Sidi Kerir, which is connected by pipeline to the Red Sea. This route has been disrupted, leaving European buyers scrambling for alternative supplies.
Polish energy group Orlen has already found an alternative source of oil and has contracted 16 additional oil cargoes over the past few days. The company has also launched more than ten tenders since last Friday in search of further alternative oil supplies.