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Saudi Pipeline Shutdown Threatens About 4% of Global Oil Supply

The shutdown of Saudi Arabia’s strategic East-West pipeline following drone attacks threatens roughly 4 million barrels per day, equivalent to about 4% of global oil supply. Industry estimates suggest repairs could take weeks, while storage at the Red Sea export terminal of Yanbu provides only limited protection against prolonged disruption.

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The pipeline is Saudi Arabia’s critical alternative to shipping oil through the disrupted Strait of Hormuz. A prolonged shutdown could tighten global energy supplies further, push fuel prices higher and intensify inflationary pressure worldwide.
Energy markets will focus on how quickly Saudi Arabia can repair the pipeline and whether stored oil can maintain exports. Governments and the International Energy Agency may face pressure for additional measures if global supply losses deepen.

Hormuz disruption reduces Gulf exports

Sep 10–11: Drones target Saudi pipeline

Sep 12: Pipeline shutdown confirmed

Sep 13: Potential loss estimated near 4% of global supply

Next: Repair timetable and global emergency supplies become critical.

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1. reuters.comView Original