Saudi pipeline outage threatens loss of 4% of global oil supply
Saudi oil buyers and traders said exports could stop within days if the pipeline is not restarted, with up to 4% of global supply at risk.
- On Friday, drone attacks forced Saudi Arabia to shut its major east-west oil pipeline, threatening a loss of up to 4% of global supply if the route is not restarted within days.
- The pipeline running through the Arabian Peninsula desert has allowed Saudi Arabia to bypass the Strait of Hormuz, which has crippled regional exports since the wartime shutdown began six months ago.
- With the route offline, Yanbu storage holds stocks for just five to seven days of exports, while Saudi Arabia also maintains reserves at Egypt's Ain Sukhna and Sidi Kerir ports.
- Compounding the crisis, Houthi fighters in Yemen seized an island Friday in the mouth of the Red Sea, adding another threat to Saudi oil shipments through the region.
- The International Energy Agency reported world oil supply will decline by 5.7 million barrels per day, or about 6% this year, as the supply crunch pushes global fuel prices to record highs.
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BizTocFrom Bad to Catastrophic: Saudi Pipeline Outage Threatens to Make Gas Prices Even More Brutal
A Houthi strike just knocked out the oil world's most critical backup route, and the window before global fuel stocks run dry is measured in days, not weeks. What happens at a Saudi port terminal over the next seven days could determine whether $4.31 gasoline is a ceiling or a floor.
Saudi Arabia could exhaust its exportable stocks in five to seven days via Yanbu, after the closure of its East-West oil pipeline targeted by drones fired from Iraq. Up to 4% of the world's oil supply...
Commercial sources warned of the loss of about 4% of the world's oil supply in the event that Saudi Arabia did not resume its pipeline leading to the Red Sea within days.
A drone attack hit Yanbu's oil knot at the Red Sea. Huthi's advance could put a considerable strain on oil prices and the global economy.
Yanbu stocks last only 5–7 days – With no clear timetable for the reopening of the East-West Pipeline, the tanker market is seeking a balance between lost Gulf cargoes and replacement barrels from further afield
Saudi Pipeline Disruption: Potential Global Oil Crisis Looms | Science-Environment
A significant pipeline disruption in Saudi Arabia threatens a global oil supply crisis, risking up to a 4% loss in global supply unless operations resume swiftly. The situation has exacerbated soaring fuel prices and economic inflation, amid concerns about protracted repair timelines following recent drone attacks.
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