Saudi Pipeline Shutdown Threatens Global Oil Supply

Saudi Arabia's East-West pipeline, which carries around 4 million barrels per day of oil to the Red Sea port of Yanbu, was shut down on Friday due to drone attacks. The pipeline accounts for approximately 4% of global oil supply and provides an alternative route for Saudi oil exports.

The shutdown has raised concerns that Saudi Arabia may face further reductions in oil exports if repairs take longer than expected. Industry sources estimate that the repair period could last five to six weeks, but another source suggests it could return sooner and operate at reduced capacity while repair work continues.

Yanbu stocks are estimated to cover five to seven days without additional flows through the East-West pipeline. Saudi Arabia also has inventories available at Egypt's Ain Sukhna port on the Red Sea and Sidi Kerir on the Mediterranean that could supply customers for several additional days.