Saudi Pipeline Attack Halts Crude Supplies to Europe Next Month
Saudi Arabia's oil giant, Saudi Aramco, has informed at least two European refineries that they will not receive any crude oil next month. This decision comes after a drone attack forced the shutdown of the kingdom's East-West pipeline, which is expected to be partially operational within days and fully restored in six weeks.
The pipeline halt has caused panic buying among some of Aramco's customers, with Poland's Orlen SA issuing over 10 tenders since Friday to secure alternative supplies. European refineries typically receive Saudi crude from Egypt's Mediterranean port of Sidi Kerir via a pipeline connected to the Red Sea.
The decision applies to all European buyers, and it is unclear how this will impact their operations. In June, European countries in the OECD imported 577,000 barrels per day of crude from Saudi Arabia, according to the International Energy Agency's Oil Market Report.