Saudi pipeline outage threatens 4% of global oil supply

LONDON, Sept 13: Saudi Arabia risks losing access to up to 4% of global oil supply unless pumping resumes within days after a drone attack forced the shutdown of its strategic East-West pipeline, Reuters reported Sunday.

The 1,200-kilometre pipeline, which carries crude from eastern Saudi Arabia to the Red Sea port of Yanbu, has been moving about 4 million barrels per day in recent months. It has become a critical alternative export route while shipping through the Strait of Hormuz remains severely disrupted by the war.

Three industry sources told Reuters that Saudi Arabia has enough oil stored at Yanbu to maintain exports for only five to seven days, with smaller quantities also held at Egyptian ports. If pumping is not restored within that period, Saudi exports could face further disruption and put additional pressure on already strained global oil supplies.

The extent of damage to the pipeline remains unclear. One industry source estimated that repairs could take five to six weeks, while another said partial pumping could resume sooner.

The shutdown comes as global energy markets are already under pressure from disruptions around both the Strait of Hormuz and the Red Sea. Brent crude has risen above $100 a barrel, raising concerns that prolonged outages could push prices even higher.

Saudi Arabia and Iraq have said the drones involved in the pipeline attack originated from Iraqi territory, although no group has claimed responsibility. The incident has further heightened concerns over the security of critical Gulf energy infrastructure.