Saudi Pipeline Threatened by Drone Attacks

Saudi Arabia's major pipeline to the Red Sea is at risk of shutting down entirely due to drone attacks, which could lead to a loss of up to 4% of global oil supply.

The pipeline has been out of service since Friday, and if it doesn't resume operations within days, Saudi Arabia will run out of stocks for exports. This would worsen the global supply crunch, which has already pushed fuel prices to record highs and spurred inflation around the world.

Saudi oil buyers and traders estimate that Yanbu storage capacity can maintain exports for just five to seven days without the pipeline resuming operations. The pipeline reroutes around 4 million barrels per day to the port of Yanbu, making up about 4% of global supply.