Saudi Arabia has reduced oil shipments to Europe after drone strikes damaged its key East-West pipeline, which carries crude oil toward the Red Sea.
Saudi Aramco has informed European customers that some crude shipments scheduled for loading in September will be canceled, while exports through the port of Yanbu have been suspended, according to reports citing sources familiar with the matter. Saudi authorities have blamed Iraqi militias for the attacks.
The East-West pipeline has allowed Saudi Arabia to limit the impact of the closure of the Strait of Hormuz over the past six months. Following the damage, Riyadh is expected to seek ways to increase exports through the Strait, potentially relying on so-called “dark” shipments, as the United Arab Emirates and Iraq are already doing.
The disruption immediately raised concerns among major European customers of Aramco, as crude prices for shipments climbed above $120 per barrel.
Polish energy company Orlen, which receives around 40% of its oil supply from Saudi Arabia, is seeking alternative shipments from the North Sea and other markets. The company says that, for now, supplies to its refineries in Poland, Lithuania and the Czech Republic continue without disruption.
