Saudi Arabia has canceled some crude oil shipments to European customers scheduled for late September after the temporary closure of the East-West pipeline, which was hit during last week's attacks. The news was announced by sources familiar with the situation, while the state company Saudi Aramco declined to comment, foreign media write.
The East-West Pipeline is one of the main routes that Saudi Arabia uses to transport oil from the Persian Gulf to the Red Sea, enabling the country to avoid the Strait of Hormuz.
The attacks have temporarily suspended oil loading at the Red Sea port of Yanbu. The developments come at a time when the global oil market is facing increased uncertainty due to attacks by Houthi rebels in the Red Sea and difficulties in shipping through the Strait of Hormuz.
Repairs to the pipeline are expected to take weeks, although US Energy Secretary Chris Wright said he expects oil to be flowing again within days. The 1,200-kilometre pipeline has been carrying between 4 million and 5 million barrels of oil a day, a significant portion of global supply. Supply disruptions and tensions in the Middle East have pushed up oil prices.
Brent crude has risen sharply and has passed the $100 per barrel mark, while markets remain concerned about the possibility of a prolonged crisis.
Pressure on supplies has also been added by developments in Libya, where another pipeline has been shut down due to problems with oil transport infrastructure. Libya exports most of its crude oil to Europe.
In an effort to address the security situation, the United States has increased cooperation with Saudi Arabia. A US official said that US Central Command has deployed a unit on the ground to improve information sharing and plan support for Saudi forces.
Meanwhile, Saudi Arabia is struggling to find alternative routes for its oil exports, while uncertainty over transportation through key Middle Eastern routes continues to weigh on the international market. Largely due to conflict and attacks on energy infrastructure, markets are facing the risk of further supply disruptions, which could also affect fuel prices in Europe and beyond.
