Saudi Pipeline Damage Disrupts European Oil Supplies
Saudi Aramco has informed at least two European refineries that they will not receive crude oil under long-term contracts in October. This decision applies to all European buyers, according to information from Bloomberg agency.
The reduction in imports is due to a drone damaging a Saudi Aramco pipeline near the Red Sea last week. The pipeline has provided the bulk of Saudi oil exports in recent months, as the Strait of Hormuz on the opposite side of the country remains blocked.
The absence of Saudi oil may force European refineries to seek alternative sources of raw materials even more actively, which could lead to further price increases in the region. The price of physical Dated Brent oil supplies this week exceeded $130 per barrel, while Brent futures for the nearest month only rose to $109.
Saudi Aramco expects to partially resume operations of the damaged pipeline in the next few days and bring it to full capacity within six weeks. In the meantime, European companies such as Orlen have already had to urgently look for other suppliers.