Saudi Pipeline Outage Threatens Up to 4% of Global Oil Supply

Saudi Arabia is facing an oil supply crisis due to a major pipeline outage caused by drone attacks. The Petroline, a 1,201-kilometer-long pipeline running from the Abqaiq oil field in the Eastern Province to Yanbu at the Red Sea, has been shut down since Friday. According to Saudi oil buyers and traders, if the pipeline doesn't restart within days, Riyadh will run out of oil stocks for exports, resulting in a loss of up to 4% of global supply.

This development comes as the global supply crunch worsens, pushing global fuel prices to record highs, spurring inflation around the world, and sending US bond yields to their highest levels since the 2008 financial crisis. The extent of the damage and the timeline for repairs remain unclear, with estimates varying between five to six weeks and a sooner partial resumption.

Satellite images taken before and after the attack reveal the severity of the damage. The pipeline's shutdown has significant implications for global oil markets, and its impact will be felt if it remains offline.