Saudi Pipeline Shutdown Threatens 4% of Global Oil Supply

A critical pipeline in Saudi Arabia is at risk of running out of oil stocks used for exports within days unless it resumes operations, threatening up to 4% of global supply.

The East-West pipeline was shut after drone attacks last week and had been carrying around 4 million barrels per day to the Red Sea port of Yanbu. This route allows Saudi Arabia to bypass the Strait of Hormuz, where ongoing conflict has severely disrupted shipping.

Oil buyers and traders told Reuters that unless the pipeline restarts, Saudi stocks at Egypt's Ain Sukhna and Sidi Kerir ports will eventually run out without the pipeline resuming operations. Three sources familiar with Saudi exports estimated that Yanbu had enough oil in storage to sustain exports for five to seven days.

Riyadh has not disclosed the full extent of the damage or a timetable for restoring flows, but one source said repairs could take five to six weeks, while another suggested the pipeline could restart sooner and operate partially during repairs. Saudi stocks at Ain Sukhna and Sidi Kerir ports could cover several days of deliveries.