Asian Refiners Seek Clarity After Saudi Pipeline Closure
Saudi Arabia has temporarily shut down its East-West oil pipeline following drone attacks near the Iranian border, raising concerns among Asian refiners about potential disruptions to crude shipments from Yanbu. The pipeline is a critical route for rerouting oil around Middle East conflicts and bypassing the Strait of Hormuz. Refiners are uncertain how long the shutdown will last or if their scheduled cargo pickups at Yanbu will be affected. The closure threatens 4 million barrels per day (bpd) in shipments, adding to existing supply chain challenges caused by Houthi threats near the Red Sea and Bab el-Mandeb Strait. Asian refiners have adapted to longer shipping routes but now face renewed uncertainty as they await updates from Saudi authorities. Market prices for Brent crude rose above $108 per barrel on concerns of further disruption. Traders report that at least four Asian refiners remain without clear communication, though some are preparing for possible delays if no new information emerges soon.
Topics: Asian refiners Middle East conflict oil pipeline shutdown Saudi Arabia Yanbu port