Saudi Pipeline Shutdown Could Threaten 4% of Global Oil Supply
According to the reports, following the pipeline’s shutdown, Yanbu currently has enough stocks to maintain exports for only around five to seven days.
Saudi oil buyers and traders say that if Saudi Arabia fails to restore its oil pipeline to the Red Sea within a few days, the country could run out of crude stocks available for export, potentially reducing global oil supplies by up to 4%.
According to foreign news agencies, Saudi Arabia was forced to shut down its extensive East-West oil pipeline following drone attacks on Friday. Saudi Arabia has been using the pipeline to transport around 4 million barrels of oil per day to the Red Sea port of Yanbu, equivalent to approximately 4% of global oil supply. According to the reports, following the pipeline’s shutdown, Yanbu currently has enough stocks to maintain exports for only around five to seven days. The reports added that Saudi Arabia also has enough oil reserves to continue supplying buyers for several more days through Egypt’s Ain Sokhna port on the Red Sea and Sidi Kerir port on the Mediterranean.
