Saudi Pipeline Shutdown Threatens 4 Million Barrels Per Day of Oil Exports

A drone attack has halted Saudi Arabia's east-west pipeline, which carries crude across the kingdom to the Red Sea port of Yanbu. The route has become increasingly important during the conflict because it allows Saudi crude to bypass the Strait of Hormuz, where oil flows have been severely disrupted.

Industry sources estimate that around 4 million barrels per day (bpd) had been rerouted through the pipeline to Yanbu over the past six months, equivalent to roughly 4% of global oil supply. This has become a crucial alternative route as flows through the Strait of Hormuz have fallen to between 6 million and 9 million bpd.

The available stocks at Yanbu could maintain shipments for another five to seven days if pipeline flows are not restored, according to industry sources. Saudi Arabia also has oil stored at Egypt's Ain Sukhna and Sidi Kerir terminals, which could cover customer requirements for several additional days.