Here's What the Saudi East-West Pipeline Shutdown Means for Asia's Biggest Crude Importers
Analysts say up to 4.5 million barrels a day of Asia-bound supply could be at risk, with higher oil prices and freight costs likely first.
- On September 13, drone attacks forced Saudi Arabia to shut its Saudi East-West pipeline, halting crude loadings at the Red Sea port of Yanbu. Brent crude fell below $100 on Monday as Aramco increased loadings from Gulf terminals.
- The pipeline previously carried oil to Yanbu, which handled a majority of Saudi exports to Asia. Following the shutdown, Aramco shifted sales to eastern ports inside the Hormuz Strait to maintain supply flow.
- South Korea relies on Saudi crude for 34.1% of imports, while Japan and China depend on it for 27.3% and 14.9% respectively. Aramco recently loaded about 14 million barrels on seven VLCCs to manage disruption.
- "Asian refiners feel the cost immediately and the physical shortage weeks later," trader Oriano Lizza said, identifying widening premiums for medium-sour grades and higher freight costs as first signs of market stress.
- Energy Secretary Chris Wright told CNBC last week that the pipeline would resume operations "very soon," though other reports suggest repairs could take between three to six weeks.
15 Articles
15 Articles
The situation on the Middle East front escalates after a new serious incident that blows up fuel prices. The strategic East–West oil pipeline in Saudi Arabia, which transports up to 5 million barrels a day, was closed down following a massive attack by a drone king launched from Iraq. Global energy shock is already in Romania: the diesel has exceeded the threshold of 10 lei and 80 dollars per litre, and the gasoline is approaching 10 lei quickly…
Data from TankerTrackers, which specializes in vessel tracking, showed that Saudi State Oil Company Aramco had increased its oil exports and loadings from its stations in the Arabian Gulf area, in prompt action taken by Saudi Arabia to compensate for the temporary shortfall caused by the disruption of supplies.
The Straits Times
Saudi Arabia ramps up Gulf oil exports after pipeline attack, data shows
The loadings add to signs of a partial recovery in Saudi shipments, with expectations of higher volumes weighing on oil prices. Read more at straitstimes.com.
Saudi Aramco ramps up Gulf oil exports after pipeline attack, data shows
RIYADH: Saudi Aramco loaded about 14 million barrels of crude oil on seven supertankers inside the Mideast Gulf on Sunday, data from TankerTrackers.com showed, as the Kingdom increased loadings from Gulf export terminals after an attack disrupted shipments via its East-West Oipeline to the Red Sea. The loadings add to signs of a partial recovery […]
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