Saudi Pipeline Attack Tests EU's Oil Security as Prices Soar
A recent drone attack on Saudi Arabia's East-West pipeline has sent shockwaves through Europe's oil market, sparking concerns about potential supply shortages and price hikes. The pipeline, which carries around 4-5 million barrels per day, was shut down after the attack on September 9, forcing European refineries to rethink their crude supply.
The East-West pipeline was built in 1981 as an alternative route for Saudi oil exports that bypasses the Strait of Hormuz. However, with the Hormuz chokepoint effectively blocked, the pipeline has become a crucial lifeline for Europe's refiners. European refineries have been forced to cancel or postpone cargoes from Yanbu, and some have turned to alternative suppliers like Norway, Britain, and Algeria.
The impact of the attack on oil prices is already being felt, with Brent crude trading above $113 a barrel due to mounting supply risks. Several European countries are trying to cushion the impact of rising diesel prices, which are being felt at the gas pump as a direct consequence of the shutdown.