Saudi Aramco Pipeline Damage Triggers Oil Supply Disruptions, Bitcoin Surges
Saudi Aramco has informed at least two European refining customers that they will receive no crude deliveries next month due to damage from an attack on the kingdom's East-West pipeline. The 1,200-kilometre pipeline can transport up to 7 million barrels of oil per day and was shut down after a September 10 drone attack damaged pumping infrastructure.
The pipeline has been partially restored with Saudi Arabia seeking to restore about half of its capacity within days. However, estimates for a full recovery range from several weeks to longer.
European refiners are seeking alternative supplies from the North Sea and other sources. Poland's Orlen, which relies on Saudi Arabia for around 40% of its crude feedstock, has issued more than 10 tenders since last Friday for alternative supplies.
Meanwhile, Bitcoin jumped 6% on September 18, briefly moving above $81,000 after trading around $77,000-$78,000 for most of the week. The cryptocurrency's price surge was influenced by the US Securities and Exchange Commission's new framework for tokenized stocks.