Japanese Refiners Rush for Oman Crude After Saudi Pipeline Shutdown

Japanese refiners have been rapidly purchasing Oman crude oil for earlier loadings following Saudi Arabia's shutdown of its key East-West oil pipeline, according to traders with knowledge of the purchases. This shutdown occurred after drone attacks launched from Iraq near the Iranian border on Thursday, resulting in several injuries, as reported by Saudi Arabia.

The 750-mile-long East-West pipeline serves as a vital oil route for Saudi Arabia, bypassing the Strait of Hormuz amid the ongoing Middle East conflict. Consequently, most of Saudi Arabia's crude loadings have been rerouted from Persian Gulf western ports to the Red Sea port of Yanbu due to the pipeline. However, Saudi Arabia has yet to provide an official update on the damage extent and repair timelines, with estimates ranging from three to five weeks.

U.S. Energy Secretary Chris Wright has claimed that the pipeline could be back in service within days. Asian refiners remain uncertain about the pipeline shutdown's impact on oil loadings at the port of Yanbu, with four Asian refiners yet to receive any clarification from Saudi Arabia.