Saudi Oil Pipeline Damage Sends Oil Prices Soaring
The major East-West oil pipeline in Saudi Arabia may be out of service for several weeks following drone attacks on September 12.
The strikes hit the pipeline's pumping stations, causing significant damage, according to satellite images. The Saudi authorities reported casualties but have yet to establish who is behind the attack.
Saudi Arabia and Iraq have stated that the drones were launched from Iraqi territory, with an investigation underway. Earlier, there was speculation that Yemeni Houthis could be responsible for the attack.
The East-West pipeline is crucial for Saudi oil exports, with approximately 4-5 million barrels of oil being pumped through it daily. This accounts for up to 5% of the global oil supply.
If the pipeline remains inoperative for an extended period, the oil industry fears a significant reduction in export volumes from Saudi Arabia. Traders and buyers estimate that current stocks at Yanbu port may only last for five to seven days.