Saudi Pipeline Shutdown Threatens Up to 4% of Global Oil Supplies

Saudi Arabia's oil supplies are under threat as the East-West pipeline remains shut down following drone attacks. The pipeline, which transports around 4 million barrels of oil per day from eastern Saudi Arabia to the port of Yanbu on the Red Sea, bypassing the Strait of Hormuz, has been out of operation since Friday.

The shutdown could lead to a loss of up to 4% of global oil supplies if it is not resolved in the coming days. Oil reserves at the port of Yanbu are expected to be sufficient for only five to seven days of exports. Additional reserves are available at Egyptian ports, Ain Sokhna and Sidi Kerir.

The timeline for restoring the pipeline is unclear, with estimates suggesting it could take anywhere from five to six weeks to repair. However, some sources believe a partial resumption of pumping may be possible sooner.