Saudi Pipeline Attack Disrupts Oil Exports, Prices Rise Amid Global Supply Concerns
Saudi Arabia's oil exports are facing a severe disruption due to Houthi attacks on one of its key pipelines. The pipeline, which transports an average of 2.6 million to 4 million barrels per day, will be mostly out of service for weeks as damage is repaired.
The attack has forced Saudi Aramco, the world's top oil exporter, to inform at least two European customers that it will not supply them with crude oil next month. This decision affects deliveries under term contracts, which are designed to ensure a steady flow every month.
Oil prices have gained over 2% amid growing concerns about global petroleum supplies and the impact of this development on Saudi Arabia's ability to export its crude. The Iran war has already led the kingdom to shift its exports away from the Persian Gulf, as Iranian attacks have restricted shipping through the Strait of Hormuz.