Four percent of global oil supply at risk due to Saudi pipeline outage
Four percent of global oil supply at risk due to Saudi pipeline outage Saudi Arabia will run out of oil stocks for exports if it doesn't restart its major pipeline to the Red Sea within days, leading to a loss of up to 4% of global supply, Saudi oil buyers and traders said. A further decline in Saudi flows will worsen the global supply crunch, which has already pushed global fuel prices to record…
Saudi Arabia faces a potential loss of up to 4% of global oil supply due to a major pipeline outage, according to oil buyers and traders. The 1,201-kilometre-long Petroline pipeline, which runs from the Abqaiq oil field in the Eastern Province to Yanbu on the Red Sea, has been shut down following drone attacks. This has left Saudi Arabia without oil stocks for exports if it fails to restart the pipeline within days.
The ongoing supply crunch has already led to record-high global fuel prices, inflation around the world, and the highest US bond yields since the 2008 financial crisis. As the extent of the damage and the timeline for repairs remain unclear, the situation remains uncertain for both Saudi Arabia and the global oil market.
Written by urgent.news from Middle East Eye's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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