Click to see full-size image. (U.S. Energy Information Administration\Wikimedia)
A drone attack that damaged Saudi Arabia’s East-West oil pipeline could put as much as 4 percent of global oil supply at risk if the route remains out of service, Reuters reported on September 14, citing satellite imagery and industry sources.
The attack forced Saudi Arabia to shut down the 1,200-kilometer pipeline, which carries crude from the kingdom’s oil-producing areas in the east to the Red Sea port of Yanbu. The route has become particularly important because it allows Saudi Arabia to bypass the Strait of Hormuz, where shipping has been severely disrupted by the war on Iran.
Reuters reported that satellite images showed significant damage at a pumping station along the pipeline, including a large fire and destruction around the facility.
The extent of the damage has raised questions about how quickly the pipeline can be restored, with estimates ranging from several days to several weeks.
Saudi Arabia has not said how long repairs will take, while Saudi Aramco has not provided refiners with clear information on shipment schedules or supply allocations from Yanbu, according to Reuters.
Several Asian refiners told the news agency they were preparing for delays and tighter supplies of the heavier, or sour, crude grades normally supplied by Saudi Arabia.
The disruption is already affecting global energy markets. Brent crude rose more than 3 percent on Monday, briefly moving above $108 a barrel, while Reuters reported that prices later climbed more than 4 percent to a 16-week high. The increase reflects growing concern that damage to Saudi infrastructure could compound existing disruptions to oil transportation across the region.
The pipeline attack comes as the conflict surrounding Iran has increasingly affected the region’s main oil-export routes. Traffic through the Strait of Hormuz has fallen sharply, while attacks and security concerns have also affected shipping in the Red Sea and surrounding waters. The East-West pipeline has provided Saudi Arabia with an alternative route for moving crude to international markets.
The attacks were launched from Iraqi territory, according to Iraqi authorities, although responsibility for the pipeline strike has not been independently established.
The developments have also come alongside a widening Houthi campaign against Saudi Arabia. Yemen’s Iran-aligned Houthis have carried out attacks on Saudi targets and have advanced along Yemen’s western coast toward the Bab el-Mandeb Strait, another major route for global maritime trade.
The combination of disruptions has increased pressure on Asian refiners and other oil buyers, who may have to seek replacement supplies from producers such as Iraq and the United Arab Emirates. Tanker costs have also risen as shipping companies face greater security risks and longer routes.
For Saudi Arabia, the pipeline outage presents a particular problem because the kingdom has relied more heavily on the route while the Strait of Hormuz remains heavily restricted.
A prolonged shutdown would therefore limit one of the country’s principal alternatives for moving crude to the Red Sea and could further tighten an already strained global oil market.
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even if saudi imbecilic savages repair it, our brave honorable fighters of the resistance will just blow it up again lol! :d
b-b-b-b-b…but 0range fat bastard just said iran is begging him for another “deal”, while the iranian government is saying no such “deal” has been made. more $ucker punching to goad the stupid a$$e$ in the market going on 25 year of debasing it’$ currency through nirp/zirp qe!!!… goes without saying… americans will receive everything that is coming to them in short order including their “monday night football”!
hollywood trump is running point. like the 911 and covid cover ups on steroids.
for at least a year, my opinion has been the same. globalists demand control of all hydrocarbons to china. if middle east ceases production to get this outcome, then it will be sacrificed. i believe it is too late for this. reference: brian berletic