Saudi Arabia Shuts East-West Oil Pipeline After Drones From Iraq Attack Route

Saudi Arabia shut down its East-West oil pipeline after drones attacked it, with the pipeline described as a 1,200-kilometer route carrying crude from eastern Saudi Arabia to the Red Sea port of Yanbu.

“leading to a loss of up to 4% of global supply”

Reuters

Reuters reported that Saudi Arabia risks losing access to up to 4% of global oil supply unless pumping resumes within days after the shutdown, and it said the pipeline had been moving about 4 million barrels per day in recent months.R

Arab Times Kuwait News

The BBC said the 1,200-kilometer-long pipeline helped Saudi Arabia, the world’s largest crude oil exporter, avoid the Strait of Hormuz, and it described the closure as a precaution after drones launched from Iraq struck the route.

The BBC also reported that Iraq dismissed an operations commander in the Maysan governorate and announced an investigation after admitting the drone attack on its neighbor’s East-West pipeline originated in one of its provinces bordering Iran.

Reuters said Yanbu now has stocks to maintain exports for just five to seven days, and it added that Saudi Arabia also has stocks at Egypt’s Ain Sukhna and Sidi Kerir to supply customers for several days.R

The Arab Times Kuwait News, citing Reuters, said industry sources told Reuters that Saudi Arabia has enough oil stored at Yanbu to maintain exports for only five to seven days, while smaller quantities are also held at Egyptian ports.R

BBC

Reuters reported that sources gave varying estimates for repairs, with one saying damage could take as long as five to six weeks to repair and another saying it could be fixed sooner and pumping could resume partially while repairs are ongoing.R

The BBC said the situation was putting increased pressure on global oil transport routes as the US-Iran conflict persists into its seventh month, and it reported that crude oil prices pushed above $100 per barrel for the first time since July.

Saudi Arabia said it would not retaliate for now and that it would “support the Iraqi government’s efforts” to “prevent attacks” launched from the country against neighboring states, while the BBC quoted the kingdom’s statement that it “would support the Iraqi government’s efforts” to “prevent attacks.”

“would support the Iraqi government’s efforts” to “prevent attacks”

BBC

The BBC also quoted Secretary-General Jasem Mohamed Albudaiwi of the Gulf Cooperation Council saying, “This attack represents a dangerous escalation and an unacceptable threat to the security of the Kingdom of Saudi Arabia,” and it described the GCC as comprising representatives from Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar, and Kuwait.

Reuters reported that Saudi Arabia told OPEC that its oil production had dropped to 6.2 million bpd in August from 10.9 million bpd in February before the start of the war, and it said the International Energy Agency expected world oil supply to decline this year by 5.7 million bpd, or about 6%.R

The NDTV Profit report said Saudi Arabia has been using the East-West pipeline to reroute around 4 million barrels of oil per day to the port of Yanbu, and it warned that the pipeline disruption could remove about 4% of global oil supply temporarily if the route does not restart.