Saudi Pipeline Disruption Threatens Global Oil Supply

Saudi Arabia's East-West pipeline disruption has sparked concerns about global oil supply, as the country may run out of exportable stocks within days. The pipeline, which carries around 4 million barrels per day (bpd) to the Red Sea port of Yanbu, was forced offline due to drone attacks on Friday.

Industry sources estimate that Yanbu's oil stocks can sustain exports for only five to seven days, and if the pipeline is not restored, it could remove up to 4% of global oil supply from the market. The disruption comes amid broader security threats to oil shipments in the region, with Houthi fighters in Yemen seizing an island at the entrance to the Red Sea.

The International Energy Agency (IEA) estimates that global oil supply will fall by 5.7 million bpd, or around 6%, this year. Saudi Arabia's oil production has already fallen to its lowest level in more than three decades due to reduced flows through the Strait of Hormuz and the Red Sea.