Saudi Oil Pipeline Shutdown Threatens Global Supply Crunch

Saudi Arabia's major East-West oil pipeline has been shut down after drone attacks on Friday, putting up to 4% of global oil supply at risk. The pipeline carries around 4 million barrels per day to the Red Sea port of Yanbu, where there are enough stocks to maintain exports for only five to seven days.

Industry sources estimate that it could take between five to six weeks to repair the damage. However, partial pumping may resume sooner as repairs continue.

The pipeline has helped Saudi Arabia maintain exports despite disruptions in the Strait of Hormuz region. Without it, Saudi oil flows could fall further, exacerbating a global supply crunch that has already pushed fuel prices higher.