Saudi Aramco halts crude oil allocations to European refiners after pipeline attack

Saudi Aramco has cut off crude oil deliveries to multiple European refining customers after drone attacks damaged the kingdom’s East-West pipeline, a critical artery that bypasses the Strait of Hormuz and feeds the Yanbu export terminal on the Red Sea coast. At least three European refiners have been notified that September cargoes are canceled or delayed, with potentially two more set to receive the same news. No Saudi crude shipments have left Yanbu since September 11, and the terminal reportedly holds only about five days’ worth of inventory. The pipeline and the price spike The East-West pipeline, also known as the Petroline, was shut down as a precaution following drone strikes that occurred around September 10. Before the attack, the pipeline had a transporting capacity of between 5 and 7 million barrels per day. Brent crude futures have surged to near $108 per barrel in response. Physical European cargo prices tell an even more dramatic story, climbing to approximately $122 per barrel as refiners compete for dwindling spot supplies. The attacks have been linked to Iraqi militias, with possible Houthi involvement. Repairs to the pipeline are expected to take between three and...