Saudi Arabia faces a critical challenge with its oil exports due to the shutdown of a major pipeline following drone attacks. If the East-West pipeline remains closed, the kingdom could soon run out of oil to export.
On Friday, Saudi Arabia announced the closure of the pipeline as a precautionary measure after strikes originating from Iraq. These attacks were likely carried out by Iranian-backed militant groups. However, details regarding the level of damage and the potential duration of the pipeline’s downtime remain undisclosed.
The East-West pipeline plays a crucial role in Saudi Arabia’s oil export strategy. It channels around 4 million barrels of oil daily to the Red Sea port of Yanbu. This route became vital after the Strait of Hormuz shut down due to ongoing conflicts in Iran.
Energy industry sources have reported that repairs to the pipeline might take up to six weeks, posing a serious risk to approximately 4 percent of the global oil supply.
Currently, Yanbu can sustain its exports for a mere five to seven days without the pipeline, as highlighted by industry sources. The potential prolonged shutdown could have significant repercussions on the oil market.
Newsweek has reached out to the Saudi government for its response to the situation. As more information becomes available, updates will be provided to the public.
Leave a Reply