Critical Decision by Saudi Aramco on Crude Oil Shipments to Europe
Following the drone attack on the East-West pipeline, Saudi Aramco announced that no crude oil allocations will be made to refinery customers in Europe next month.
Following the global supply crisis triggered by the war between the US and Iran, Saudi Aramco informed its customers in Europe that no crude oil will be allocated to them next month due to a drone attack on the pipeline extending to the Red Sea.
Drone Attack on the Pipeline
Saudi Aramco, Saudi Arabia's state-owned national oil and natural gas company, saw its critical East-West oil pipeline extending to the Red Sea targeted by a drone attack last week.
Official Notification to European Customers
Having to shut down the pipeline following the attack, Saudi Aramco officially notified at least two refinery customers in Europe that no crude oil would be allocated next month, and it was reported that the interruption decision covers all buyers.
Pipeline Repair Process and Expectations
Evaluating the process, sources close to the matter expect the pipeline to partially resume operations within a few days and become fully operational within six weeks.
Alternative Searches by European Companies
While the pipeline disruption is expected to create a major problem for companies, European customers, notably Polish energy company Orlen SA, have launched more than ten tenders since Friday to find alternative supply sources.
Europe's Oil Imports from Saudi Arabia
According to data from the International Energy Agency's monthly Oil Market Report, OECD European countries imported 577,000 barrels of crude oil per day from Saudi Arabia in June.