East West Oil Pipeline Hit Leaves Europe Short of Diesel

The East West Pipeline is Saudi Arabia's route around the Strait of Hormuz, and its shutdown pushes crude and diesel back through the Gulf. Alex Hodes, StoneX Director of Energy Market Strategy, explains what the East West Pipeline shutdown does to Saudi crude exports and to Europe's diesel supply. Saudi Arabia built the line to carry crude from its eastern fields to the Red Sea, where the port of Yanbu handles refining plus crude and diesel loadings that have supplied Europe through this crisis. With the route interrupted, sellers are moving barrels out of the Strait of Hormuz by ship to ship transfer, and Red Sea loadings were already thinning under pressure from the Houthis. 0:00 East West Pipeline Goes Dark 0:56 Saudi Arabia's Hormuz Bypass 2:01 Yanbu Feeds Europe's Diesel 3:13 Red Sea Loadings Were Thinning 3:54 Crude Heads Back to Hormuz 5:04 Diesel Beats Crude for Risk Discover Actionable Energy Insights with StoneX Market Intelligence: https://shop.stonex.com/collections/energy?utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_alex_hodes&utm_content=share(opens in new window) Like and subscribe for more financial market insights. #StoneX #AlexHodes #CrudeOil #Diesel