Saudi Aramco suspends oil supplies to Europe after pipeline attack
Energy security is a fragile construct where even a single blow to infrastructure can trigger a chain reaction worldwide. When key routes are threatened, markets react instantly, and consumers seek alternatives. Geopolitics and energy are so closely intertwined that any conflict affects prices and supplies.
Saudi Aramco, Saudi Arabia's national oil and gas company, intends to suspend oil supplies to European customers under October contracts after attacks paralysed a key pipeline leading to the Red Sea, Bloomberg News reported on Friday, citing sources familiar with the situation.
The report said the Saudi state oil producer, also one of the world's largest by revenue and market capitalisation, notified at least two European refineries that they will not receive their planned October crude cargoes. The decision applies to all European buyers of Aramco, the report said. Aramco has so far declined to comment on its decision.
European refineries typically use long-term contracts with Aramco to ensure predictable monthly supplies. The disruption is likely to push them to buy more expensive alternative cargoes on the spot market. Saudi Arabia's Energy Ministry said on September 11 that sections of the east-west pipeline in Riyadh and Medina had come under repeated attacks the day before, leading to a precautionary shutdown. The pipeline has still not resumed normal operation.
The pipeline, more than 1,200 km long, transports crude oil from production areas in eastern Saudi Arabia to the port of Yanbu on the Red Sea, providing an export route bypassing the Strait of Hormuz. Its peak capacity is 7 million barrels per day, including up to 5 million barrels available for export.
As reported by CCTV+, Saudi Aramco's suspension of supplies to European customers followed attacks on key infrastructure and demonstrates the vulnerability of global energy chains. The situation could lead to higher oil prices and force European refineries to seek alternative supplies on the spot market, increasing volatility in the energy sector.
