Saudi Pipeline Shutdown Disrupts Europe Oil Shipments

Saudi Arabia has canceled crude oil shipments to European refiners after drone attacks forced the shutdown of its key East-West pipeline, intensifying supply pressures in an already strained global market. The pipeline, which transports oil from Saudi Arabia's eastern fields to the Red Sea port of Yanbu, was shut down on September 10 following the attacks, which Riyadh blamed on an Iraqi militia. The disruption has led to canceled or delayed cargoes for at least three European refineries, with some deliveries postponed until November, according to market sources. The shutdown has forced European refiners to scramble for alternative supplies. Poland's state-controlled refiner Orlen, which sources about 40% of its crude from Saudi Aramco, is securing replacements from the North Sea and other regions, including grades like Grane and Johan Sverdrup. Orlen said its refineries continue to receive feedstock normally, but the prolonged closure of the pipeline could escalate supply issues across Europe. Oil prices have risen in response, with Brent futures trading near $108 per barrel and physical cargoes in Europe reaching around $122 per barrel.