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Saudi Pipeline Attack Disrupts Crude Deliveries To Europe

Saudi Arabia shut its East-West pipeline last week after the drone attack

Photo by Christian Harb / Unsplash

Saudi Aramco has told European refining customers they will receive no Saudi crude next month following a drone attack that forced the shutdown of a key oil pipeline, according to people familiar with the decision.

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The suspension affects European buyers that typically receive Saudi crude through monthly term contracts. The deliveries normally reach refineries through Egypt’s Mediterranean port of Sidi Kerir, which is linked to the Red Sea by pipeline.

Saudi Arabia shut its East-West pipeline last week after the drone attack. A person familiar with the matter said partial operations are expected to resume within days, while a full restart could take up to six weeks.

The disruption has prompted European refiners to seek alternative supplies. Poland’s Orlen has issued more than 10 tenders since Friday as it attempts to secure replacement crude, the report said.

According to the International Energy Agency, OECD countries in Europe imported about 577,000 barrels per day of Saudi crude in June, highlighting the scale of the supply relationship.

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