Saudi Arabia has not reacted to reports of cancellations or delays in crude oil shipments to European refineries. This situation has arisen following last week's drone attacks on the country's East-West pipeline, and the scale of the disruption in oil deliveries to Europe is still not clearly defined.
Delay status in oil delivery
The Argus energy pricing agency has reported that at least three European refineries have canceled or postponed their shipments scheduled for late September, with some delays extending to November. The Saudi Ministry of Energy announced on Friday that it had temporarily shut down the pipeline following drone attacks in the Riyadh and Medina regions. Saudi and Iraqi officials stated that the drones were launched from Iraq.
Read more: Qatar and UAE's efforts to bypass the Strait of Hormuz in LNG exports
Possible consequences of oil delivery disruption
The Saudi Ministry of Energy has stated that technical teams are assessing the pipeline situation, but the timeline for resuming pumping has not been specified. This pipeline transports oil from Saudi Arabia's eastern oil fields to the port of Yanbu on the Red Sea, allowing the country's exports to bypass the Strait of Hormuz. From Yanbu, tankers head north towards the Suez Canal. Meanwhile, oil storage facilities at export terminals can help facilitate shipments during the shutdown.
U.S. Energy Secretary Chris Wright announced on Tuesday that this pipeline disruption will be measured "in days." Additionally, Saudi Arabia's state oil company, Aramco, has not responded to requests for comment at the time of this report.
Security situation in the region
Meanwhile, the Saudi-led coalition announced on Wednesday that it intercepted a Houthi drone south of Mecca the previous night. The Houthis have denied this claim. Last week, Iran-backed Houthis took control of the Bab al-Mandab Strait in the Red Sea and seized the port of Mokha and nearby islands from the Yemeni government, which is supported by Saudi Arabia. The Bab al-Mandab Strait is directly located on the route to Asia and is considered one of the key trade routes between Europe and Asia.
Qatar warned on Tuesday that losing access to the Bab al-Mandab Strait would worsen existing transport disruptions through Hormuz. Ibrahim bin Sultan Alhashimi, Director of Media and Communications at the Qatari Ministry of Foreign Affairs, stated at a press conference in Doha that this situation would be "catastrophic for the entire world" and called for international efforts to preserve this waterway. Meanwhile, Saudi Crown Prince Mohammed bin Salman and Egyptian President Abdel Fattah el-Sisi discussed the security of maritime routes in the region on Tuesday in Cairo.
Read more: Saudi oil pipeline shutdown threatens exports to Europe and Asia · Saudi Arabia: Oil pipeline shutdown due to Iraqi drones!
