Saudi Aramco Suspends October Crude Deliveries to Some European Refineries

en.Wedoany.com Reported - On September 18, Saudi Aramco notified at least two European refining companies that it was suspending their October crude oil deliveries. The supply adjustment came after a drone attack on Saudi Arabia's East-West Pipeline, which damaged some pump stations and affected crude transportation to the Red Sea port of Yanbu.

The East-West Pipeline connects Saudi Arabia's eastern oil fields to the Red Sea port of Yanbu and is a key overland route for transporting crude from the Persian Gulf production region to Red Sea export terminals. The attack damaged three pump stations and temporarily halted crude loading operations at Yanbu. Saudi Aramco subsequently canceled some cargoes destined for European customers, and some European long-term contract customers need to rearrange their October crude purchases.

Polish energy group ORLEN is one of the European refining companies affected by the supply disruption. On September 16, ORLEN announced the additional purchase of 16 crude oil cargoes for its refineries in Poland, Lithuania, and the Czech Republic, with new supplies coming from Norway, the United Kingdom, Algeria, Kazakhstan, Azerbaijan, and the Americas. Traders had previously said the company was filling the crude shortfall caused by reduced Saudi supply, with related replacement purchases extending through November.

After transportation in the Red Sea direction was restricted, Saudi Aramco simultaneously increased ship-to-ship transfer arrangements near Sohar, Oman, delivering some crude to international customers through alternative transportation routes. On September 16, signs had already emerged in the market that Saudi Arabia was increasing crude supply through the Oman route.

Saudi Arabia is currently advancing repairs on the damaged pipeline. Related reports indicate that Saudi Aramco plans to first restore partial transmission capacity, with full restoration possibly still requiring several weeks. The progress of the East-West Pipeline restoration will directly affect crude loading operations in the Yanbu direction and subsequent supply arrangements for European customers.