Saudi Oil Pipeline Damage Threatens Global Supply

The 'East-West' oil pipeline in Saudi Arabia has been damaged due to drone attacks on September 12, causing significant damage to its pumping stations.

Satellite images show the extent of the damage, and authorities have reported casualties. The origin of the attack is still unclear, with both Saudi Arabia and Iraq stating that the drones were launched from Iraqi territory.

The pipeline is crucial for Saudi oil exports, transporting around 4-5 million barrels per day, which accounts for up to 5% of global oil supply.

If repairs take several weeks, as feared, it could lead to a significant reduction in export volumes and impact the global market. Current stocks at Yanbu port may only last five to seven days, and traders warn that if the pipeline is not restored partially within this time, supply volumes from Saudi Arabia could decrease.