Saudi Oil Shipments Delayed After Pipeline Attack

Saudi Arabia has reportedly delayed some oil shipments to Europe following drone attacks on its East-West pipeline. The disruption is said to have affected at least three European refiners, with some cargoes postponed until November.

The East-West pipeline carries crude from Saudi Arabia's eastern oilfields to Yanbu on the Red Sea. Industry estimates suggest that around 4 million barrels per day are being rerouted through this route, which is roughly 4% of global supply.

Yanbu's storage capacity can cushion the initial impact of the disruption, with estimates suggesting it has enough inventory to cover five to seven days. However, additional storage and infrastructure at Egypt's Ain Sukhna and Sidi Kerir terminals provide another route between the Red Sea and the Mediterranean.