Oil Shipments from Saudi Arabia to Europe Suspended Due to Red Sea Pipeline Attack

Saudi Aramco announced that it will not be able to supply crude oil to refinery customers in Europe next month following a drone attack on a key pipeline extending to the Red Sea. The decision covers all European buyers and has heightened supply concerns globally.

Pipeline Attack and Interruption Decision

Saudi state-owned energy giant Saudi Aramco informed refinery customers in Europe that crude oil cannot be provided next month following a drone attack on the critical East-West oil pipeline extending to the Red Sea.

It was reported that this decision covers all European buyers, the shipments in question cannot be carried out next month, and the pipeline had to be shut down following the attack.

Pipeline Repair Process and Expectations

Statements made by sources close to the matter indicated that the damaged line is anticipated to partially resume operations within a few days.

Additionally, it was noted that bringing the facility back to full operational capacity is expected to take approximately six weeks.

European Buyers' Reaction and Alternatives

The disruptions caused panic among European customers, with companies like Poland's Orlen SA launching more than ten tenders since Friday to secure alternative supply sources.

It was stated that this disruption in the pipeline will pose a major problem for companies in the region and has accelerated the race for supplies in the market.

European Import Data and Global Impacts

According to data from the International Energy Agency's monthly Oil Market Report, OECD European countries imported 577 thousand barrels of crude oil per day from Saudi Arabia in June.

It was emphasized that this supply crunch continues to significantly impact major oil refining companies in the Middle East.