Key facts
- Saudi Aramco has informed some European refiners they will receive no Saudi crude in October.
- The kingdom's East-West oil pipeline was shut down after drone attacks damaged three pumping stations.
- The East-West pipeline carried about 4 million to 5 million barrels of crude a day to the Red Sea port of Yanbu.
- King Fahd Port in Yanbu was targeted by Houthi ballistic missiles.
- European OECD countries imported about 577,000 barrels per day from Saudi Arabia as of June.
- Saudi Arabia is seeking alternative routes, including increased shipments through the Strait of Hormuz.
Saudi Arabia's state oil company, Saudi Aramco, has informed at least some European refiners that they will receive no Saudi crude in October due to the shutdown of the kingdom's East-West oil pipeline. The disruption follows drone attacks that damaged three pumping stations along the 1,200-kilometer pipeline, which had been carrying approximately 4 million to 5 million barrels of crude daily to the Red Sea port of Yanbu.
Earlier reports indicated that King Fahd Port in Yanbu was targeted by Houthi ballistic missiles. According to International Energy Agency data cited by Bloomberg, European OECD countries were importing about 577,000 barrels per day from Saudi Arabia as of June. Saudi Arabia has been seeking alternative routes, including increased shipments through the Strait of Hormuz, while repairs to the pipeline are expected to take weeks.
The situation arises amid broader regional instability, with the Houthi conflict, supported by Iran, raising fears of disruptions. However, Houthi forces have pledged not to attack US or commercial vessels. The kingdom has previously sold up to 60 million barrels of crude for September and October loadings via ship-to-ship transfers outside the Strait of Hormuz to bypass potential disruptions.