Saudi Pipeline Shutdown Threatens 4 Million Barrels Per Day of Crude Oil Shipments

Asian refiners are bracing for potential disruptions to oil loadings at the Saudi port of Yanbu after the temporary shutdown of the East-West pipeline due to drone attacks from Iraqi territory near the Iranian border.

The closure, announced by Saudi Arabia as a precautionary measure following the attacks that resulted in injuries, poses a major risk to around 4 million barrels per day (bpd) of crude oil shipments from Yanbu.

Asian refiners have had to adapt to longer routes and timelines for receiving Saudi crude, including via the Mediterranean and around Africa due to Houthi threats in the southern Red Sea and the Bab el-Mandeb Strait. Now, their supply out of Yanbu could be at risk.

At least four Asian refiners are awaiting updates on oil loading schedules from Saudi Arabia, with two expecting to pick up their cargoes as scheduled unless they receive communication about delays in the coming hours and days.