Aramco Halts October Crude Deliveries to Some European Refiners After Pipeline Attack

Aramco Halts October Crude Deliveries to Some European Refiners After Pipeline Attack
Photo Source: (Aramco’s Website)

Saudi Aramco has told at least two European refiners they will receive no crude oil in October after drone attacks disrupted Saudi Arabia’s East-West pipeline and Red Sea exports, Bloomberg reported.

European refiners typically receive Saudi crude under term contracts that secure monthly supplies. However, Aramco informed some customers that their October deliveries would not proceed, according to people familiar with the matter.

The disruption followed drone attacks that damaged three pumping stations and forced the shutdown of the East-West pipeline, affecting crude loadings from the Red Sea port of Yanbu. Poland’s Orlen has since sought alternative supplies, including North Sea crude.

Aramco is working to partially restart the pipeline within days and restore full capacity within six weeks, Bloomberg reported. The company did not immediately respond to a Reuters request for comment, while Reuters could not independently verify the report.

Meanwhile, Aramco has increased crude exports from the Gulf through ship-to-ship transfers off Oman’s Sohar port to offset lower Red Sea shipments. The company is using the route to move additional barrels outside the Strait of Hormuz.

The latest cancellations extend disruptions reported on September 13, when Saudi Arabia began reducing crude shipments to Europe after the September 11 attacks shut the East-West pipeline, which can carry around 4 million barrels per day to Yanbu.

At the time, Aramco also offered additional Arab Light, Arab Medium and Arab Heavy crude to Asian term buyers through ship-to-ship transfers off Sohar, as Saudi Arabia turned to alternative routes to maintain international crude supplies.

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