Saudi Crude Oil Supply Falls to 6 Million Barrels per Day; East-West Pipeline Suspended

en.Wedoany.com Reported - On September 11, the International Energy Agency released the latest data showing that Saudi Arabia's crude oil supply fell to 6 million barrels per day in August, a month-on-month decrease of 2.3 million barrels per day, the lowest level in more than 30 years. The IEA also revised down its forecast for Saudi Arabia's average crude oil supply in 2026 by 885,000 barrels per day to 7.6 million barrels per day, mainly because production and export recovery in the Middle East has been slower than previously expected.

Saudi Arabia also suspended operations of the East-West Pipeline connecting the eastern oil fields to the Red Sea port of Yanbu during the same period. The pipeline is an important alternative route for Saudi crude oil exports to the Red Sea after transportation through the Strait of Hormuz was restricted, and a pumping station was recently attacked and damaged by a drone. The Saudi government confirmed on September 11 that the attacking drone came from the direction of Iraq and said it would continue to take measures to protect energy infrastructure.

IEA data show that Saudi Arabia's crude oil loadings in August, including Red Sea routes and other transportation methods, fell to about 3.5 million barrels per day, a month-on-month decrease of about 1.1 million barrels per day; crude oil inventories decreased by about 400,000 barrels per day during the same period. Saudi Arabia reported to OPEC an August supply of 7.122 million barrels per day and production of 6.238 million barrels per day, while the IEA's market supply basis was 6 million barrels per day.

Saudi Arabia's energy facilities have recently been subjected to consecutive attacks. Yemen's Houthi armed forces launched missile and drone attacks on energy facilities in southern Saudi Arabia and along the Red Sea coast, affecting the Jizan refinery, Red Sea shipping, and oil transportation facilities toward Yanbu to varying degrees; the alternative export function borne by Saudi Arabia's East-West Pipeline has therefore come under new operational constraints.

Global oil prices fluctuated sharply during the same period. On September 11, Brent crude settled at $104.61 per barrel and WTI crude settled at $100.05 per barrel. Although they fell 2.8% and 2.4% respectively that day, the two benchmark crudes still recorded gains of more than 8% for the week, the largest weekly increase since July. Both crudes touched their highest intraday levels since May.

The IEA's latest monthly report forecasts that global oil supply in 2026 will decline by 5.7 million barrels per day year-on-year, a decrease of about 6%, higher than the previously expected decline of about 4%. Delayed supply recovery in the Middle East Gulf region, disrupted tanker transportation, and damage to refineries and energy infrastructure constitute the main factors behind this downward revision of the supply forecast.