Saudi Aramco halts crude oil supply to European customers
Saudi Aramco halted term-contract deliveries to Europe after a drone attack shut its East-West pipeline, disrupting supply for buyers that imported 577,000 barrels a day in June.
- On Friday, Saudi Aramco notified European refiners that crude deliveries are suspended for next month following a drone attack on the East-West pipeline that connects to the Red Sea.
- A drone attack last week shut the East-West pipeline, which typically transports crude to a Red Sea export terminal, disrupting the established supply route for European customers.
- OECD countries in Europe imported 577,000 barrels a day of Saudi crude in June, while Poland's Orlen SA issued more than 10 tenders this week seeking alternative supplies.
- Refiners have engaged in panic buying to cover the shortfall, forcing companies to seek replacement barrels immediately as they respond to the supply disruption.
- The East-West pipeline is due to partially restart within days and return to full capacity within six weeks, according to a person familiar with the matter.
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According to insiders, Saudi Arabia no longer wants to supply crude oil to European refineries next month. The trigger is therefore a drone attack on an important pipeline. The concern about supply shortages is growing.
'No crude oil next month', Saudi Aramco tells some European refiners after Red Sea pipeline attack
International Business News: Saudi Aramco has informed at least two European refining customers that they will receive no crude oil next month following an attack on a key Saudi p.
Saudi Arabia to halt crude supplies to European customers next month amid Houthi strikes: Report
A media report has claimed that Saudi Arabia has told European refiners that they won't be supplied with crude oil in October, as the conflict with the Houthis continues. However, Saudi Aramco -- state-owned company of Saudi Arabia -- has not confirmed the report.
Last week, Saudi Arabia reported a drone attack on its important East-West pipeline. Due to the damage, Riyadh seems to be stopping oil deliveries to Europe for a month.
Saudi Aramco has told at least two European refining customers that it will not be able to ship crude in October after its East-West pipeline to the Red Sea was attacked on September 10. The situation is made worse by the fact that the market for refined products, especially diesel, has been stretched for months, partly due to the loss of Russian refining capacity and strong US demand.
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