Key facts
- Drone attacks on Friday damaged a crucial Saudi oil pipeline.
- Satellite images show significant damage to a pumping station on the 1,200km east-west pipeline.
- The pipeline is used to reroute about 4 million barrels per day, or 4% of global supply, to the Red Sea port of Yanbu.
- Saudi oil buyers and traders warned that a prolonged shutdown could lead to the loss of up to 4% of global supply.
- Estimates for repair duration vary, with some suggesting up to six weeks, while others believe it could be fixed sooner.
- The Houthis have claimed responsibility for attacks on Saudi oil infrastructure and shipping.
Drone attacks on Friday have forced Saudi Arabia to shut down its crucial east-west pipeline, a move that could lead to the loss of up to 4% of global oil supply and push prices to their highest levels in months. Satellite images released on Sunday night showed a pumping station on the 1,200km pipeline charred and badly damaged.
Saudi Arabia, the world's largest oil exporter, uses the pipeline to reroute approximately 4 million barrels per day to the Red Sea port of Yanbu. Industry sources familiar with Saudi exports indicated that Yanbu has enough stocks to maintain exports for only five to seven days without the pipeline resuming operations. Stocks are not full and will ultimately run out without the pipeline's resumption.
Estimates on repair duration vary significantly. One source suggested it could take up to six weeks, while another indicated it could be fixed sooner, potentially allowing for partial pumping during repairs. Saudi Arabia's government media office and energy ministry have not yet provided full details on the extent of the damage or the expected downtime.
The attacks, which the Saudis attributed to militants in Iraq, come as Yemen's Iran-aligned Houthi forces have expanded their control in the Bab al-Mandab strait, a strategic waterway. The international oil benchmark, Brent crude, rose more than 3.4% to $108 per barrel on Sunday following the news.
In parallel, hopes for a diplomatic breakthrough in the region faded as a scheduled regional meeting was postponed. Iranian officials had indicated they would attend to present an agreement with Oman on governing shipping routes through the Strait of Hormuz, which has seen increased transit fees and requirements since the war began.