Saudi Pipeline Shutdown Sparks Fears of Global Oil Supply Shortage

Saudi Arabia's East-West oil pipeline has been shut down due to recent damage, sparking concerns about a potential shortage in global oil supplies.

According to industry data, the pipeline typically transports around 4 million barrels of oil daily to the Red Sea port of Yanbu. With the pipeline currently out of operation, Yanbu port retains only enough oil to sustain exports for five to seven days.

The International Energy Agency (IEA) has reported that maritime route blockades and infrastructure damage have caused Saudi oil supplies to plummet to a three-decade low in August.

The global market could face a deficit of approximately 5.7 million barrels, or 6 percent of daily oil supplies, this year, according to the IEA.