Saudi Aramco Tells European Buyers They Will Miss October Crude Deliveries After Drone Strike on Pipeline
Saudi Aramco has told European customers they will not receive October crude under long-term contracts after a drone attack forced a key pipeline to shut down. The disruption is expected to push European refiners to seek alternative oil supplies.
Saudi Arabia's state oil company, Saudi Aramco, has informed its European customers that they will not receive any crude oil in October under their long-term supply contracts, Bloomberg reported, citing sources familiar with the matter. The move follows an attack on a major pipeline that carries oil to the Red Sea.
Under normal circumstances, European buyers receive steady monthly volumes of Saudi crude through these long-term agreements. According to Bloomberg, the absence of Saudi oil in October is expected to force European refiners to look for alternative sources of supply.
The Attack and Its Aftermath
The affected pipeline, known as the East–West pipeline, was taken offline last week following a drone attack. Saudi Arabia's Foreign Ministry stated that the drones had been launched from Iraq.
A source told Bloomberg that Aramco expects to bring part of the pipeline back into operation within a few days, with full capacity expected to be restored within roughly six weeks.
The disruption could have ripple effects on the European oil market, adding pressure on prices and pushing refiners toward alternative suppliers until the pipeline is fully operational again.
