Saudi pipeline shutdown threatens oil exports to Europe and Asia as kingdom relies on stored supplies
The pipeline disruption comes as Gulf oil exports have already fallen sharply and shipping routes face further threats. With no restart date announced, the impact on deliveries to Europe and Asia depends on how long the shutdown lasts.
Saudi Arabia has temporarily halted its East-West pipeline due to drone attacks, which could disrupt oil exports to Europe and Asia, the kingdom's energy ministry announced on Friday. The pipeline, spanning 1,200 kilometers, transports oil from eastern Saudi Arabia to Yanbu on the west coast, enabling exports via the Red Sea without passing through the Strait of Hormuz.
The attack, originating from Iraq, prompted the ministry to secure the pipeline and assess its safety. While the duration of the shutdown remains uncertain, estimates suggest a prolonged outage could impact up to 4 million barrels per day, equivalent to approximately 4% of global oil supply. Stored oil at Yanbu port may sustain exports for 5 to 7 days, but this is dependent on the speed of resuming pumping and the availability of stored oil.
Brent crude futures surged around 3% in early trading on Monday following additional attacks on energy facilities and shipping in the Middle East. The pipeline also supplies refineries on Saudi Arabia's west coast, though its capacity does not align with the actual exported quantities.
Deliveries to Europe and Asia will rely on tankers traversing the Red Sea to the Suez Canal and Mediterranean, or alternatively, the long route around Africa. The International Energy Agency reported a 507 million barrel decline in global stored oil supplies since February, with Gulf oil exports down to around 13 million barrels per day in August, nearly half their pre-war levels.
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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