Saudi Pipeline Outage Could Deepen the Global Fuel Crunch
Three pumping stations were damaged, and repairs could take five to six weeks as Brent crude rose to around $108 a barrel, Reuters reported.
- On September 10, Saudi Arabia shut its critical East-West pipeline following multiple attacks, removing a vital export route that allows crude shipments to bypass the Strait of Hormuz.
- Three pumping stations sustained damage during the attack, according to satellite imagery, with industry sources noting that repairs could take five to six weeks, though partial pumping might resume sooner.
- Brent crude surged to around $108 per barrel earlier this week as traders confronted the loss of this major export route, while analysts note Dated Brent remains above $130.
- Increasing reliance on the Persian Gulf, Saudi Aramco is racing to restore capacity by selling 20 million barrels on the spot market for delivery via ship-to-ship transfers outside Hormuz.
- Asian economies dependent on imported energy now face a sharper supply squeeze, as the pipeline outage deepens an energy shock that has already pushed crude oil prices above $100.
18 Articles
18 Articles
Crude Oil Above $100: Can Saudi Arabia’s export disruption trigger a new global energy shock?
Crude oil has crossed $100 a barrel as Saudi Arabia faces disruptions to its alternative export route following attacks on the East-West Pipeline. Prolonged outages could tighten global supplies, raise prices and increase risks for oil-importing economies such as India, while a sustained disruption could push Brent towards $115-$125 a barrel.
Oil prices fell on Friday against expectations of a progressive resumption of flows through Saudi Arabia's East-West pipeline.
Key Saudi pipeline to be shut down for weeks as diesel prices hit...
New satellite photos show extensive damage to the East-West Pipeline, which was hit last week in a drone strike. Fears of a global energy shortage are rising amid new revelations about damage inflicted last week on a key oil pipeline in Saudi Arabia. According to a Monday report in The Associated Press, Saudi Arabia's East-West Pipeline, which is used to transport oil to the Red Sea, will be shut down for weeks after being hit last Thursday by a…
Saudi Pipeline Outage Could Deepen the Global Fuel Crunch
The temporary closure of the key onshore pipeline Saudi Arabia uses to bypass the Strait of Hormuz has added another shock to an oil market already struggling with six months of Middle East supply disruptions. And the damage now appears to be more extensive than initially believed. Three pumping stations along Saudi Arabia’s East-West pipeline were damaged in last week’s attack, Reuters reported on Thursday, citing satellite imagery and industry…
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