No word from Riyadh on oil delivery cancellations as scale of disruption remains unclear
The pipeline shutdown has put pressure on Saudi oil supplies to Europe as further conflict in the region threatens shipping routes. Riyadh has yet to comment on reports that some refiners face delays until November.
Saudi Arabia has not made any statements regarding its cancellation or postponement of oil shipments to European refiners, following recent drone attacks on its East-West pipeline. The extent of the disruption to European deliveries remains uncertain. Argus, an energy pricing agency, reported on Tuesday that at least three European refiners had scheduled cargoes cancelled or delayed, with some shipments now pushed back until November.
Saudi Arabia's energy ministry initiated a precautionary shutdown after drone assaults on the pipeline in Riyadh and Medina regions on the previous day. Both Saudi and Iraqi authorities claimed the drones originated from Iraq.
Technical teams are examining the pipeline, but the resumption of pumping operations remains unconfirmed. The pipeline transports crude from Saudi Arabia's eastern oilfields to the Red Sea port of Yanbu, facilitating exports that circumvent the Strait of Hormuz. From Yanbu, tankers sailing towards Europe cross northwards towards the Suez Canal.
Egypt's SUMED pipeline offers an alternative route for crude to reach the Mediterranean from the Red Sea. Oil stored at export terminals can maintain the flow of cargoes during a pipeline shutdown, with the duration of storage contingent on the available stocks and the pace of pipeline deliveries resuming.
U.S. Energy Secretary Chris Wright stated on Tuesday that the pipeline interruption would last "measured in days." Saudi Arabia's state-owned oil company, Aramco, did not provide a response to a request for comment from Euronews at the time of publication. Earlier this week, the Saudi-led coalition reported intercepting a Houthi drone south of Mecca the prior evening; however, the Houthis denied targeting the city.
Last week, Yemen's Iran-backed Houthi rebels seized control of the Bab el-Mandeb strait in the Red Sea following the takeover of the port of Mokha and adjacent islands from Yemen's Saudi-supported internationally recognized government. Bab el-Mandeb, situated south of Yanbu on the direct route to Asia, is a crucial passage for trade between Europe and Asia.
Qatar cautioned on Tuesday that the loss of access to Bab el-Mandeb would exacerbate the existing shipping disruptions through Hormuz, expressing a dire need for international efforts to maintain the waterway open. In Cairo, Saudi Crown Prince Mohammed bin Salman and Egyptian President Abdel Fattah el-Sisi deliberated on the security of regional shipping routes, with el-Sisi expressing solidarity with Saudi measures to safeguard the kingdom and advocating for a political resolution in Yemen.
Written by urgent.news from Euronews Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
