Saudi Pipeline Shutdown Threatens Global Oil Supply

Saudi Arabia's oil exports are at risk of being severely impacted due to the shutdown of its major east-west pipeline, which has been out of commission since September 11. The pipeline, which was damaged in drone attacks, is a crucial route for transporting oil from the Red Sea port of Yanbu to international markets.

The pipeline's shutdown could put up to four percent of global oil supply at risk, with industry sources estimating that Yanbu has enough oil stocks to maintain exports for only five to seven days. Saudi Arabia's government media office and energy ministry have not provided full details about the extent of the damage or how long the route is expected to remain offline.

The shutdown comes as global oil supply is already facing a significant crunch, with the International Energy Agency (IEA) expecting a decline of 5.7 million barrels per day this year, or about six percent. The IEA also noted that Saudi Arabia's oil production had fallen to 6.2 million barrels per day in August, down sharply from 10.9 million barrels per day in February before the war began.