Saudi Pipeline Shutdown Threatens 4% of Global Oil Supply
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Riyadh: Saudi Arabia could lose access to export stocks within days if its major East-West oil pipeline is not restored, putting up to 4% of global oil supply at risk, according to Saudi oil buyers and traders.
The pipeline, which carries around 4 million barrels per day to the Red Sea port of Yanbu, was shut after drone attacks on Friday. Industry sources said Yanbu has enough stocks to maintain exports for only five to seven days.
Repair estimates vary, with one source suggesting the damage could take five to six weeks to fix, while another said partial pumping could resume sooner as repairs continue.
The pipeline has helped Saudi Arabia maintain exports despite disruptions around the Strait of Hormuz. Without it, Saudi oil flows could fall further, worsening a global supply crunch that has already pushed fuel prices higher.
Saudi oil production fell to 6.2 million barrels per day in August, from 10.9 million bpd in February, according to OPEC figures cited by the International Energy Agency.
Pic Credit: AFP
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