Saudi Aramco has suspended crude oil shipments to European refineries following drone attacks on the East-West pipeline, also known as Petroline. The strikes, which occurred around September 10, forced the shutdown of the pipeline that feeds the Yanbu export terminal on the Red Sea coast.
At least three European refiners have received notifications regarding the cancellation or delay of September cargoes, with two additional companies potentially facing similar issues. No shipments have departed from the Yanbu terminal since September 11, which reportedly maintains only five days of inventory.
Before the incident, the pipeline operated with a capacity of 5 to 7 million barrels per day, with actual throughput ranging between 2.6 and 4 million barrels per day. Repairs to the infrastructure are estimated to take between three and six weeks.
Brent crude futures have risen to near $108 per barrel, while physical cargo prices in Europe have climbed to approximately $122 per barrel. The spread between these prices currently stands at $14 per barrel, reflecting increased market tightness.
Poland’s Orlen is significantly affected, as it relies on Saudi Aramco for roughly 40% of the feedstock for its three refineries. In response to the disruption, Saudi Aramco has redirected some volumes to Asian buyers via its operational terminals at Ras Tanura and Juaymah.
