Saudi Oil Pipeline Attack Threatens European Supplies
An attack on Saudi Arabia's East-West pipeline has disrupted oil exports and raised concerns over global energy security. The 1,200-kilometer Petroline, which carries up to 7 million barrels per day (bpd), was damaged at multiple points, forcing a shutdown of this critical alternative route around the Strait of Hormuz. A prolonged outage could threaten between 3.5–4 million bpd in Saudi crude exports. The immediate issue is storage capacity: Yanbu's crude inventories have dropped to near their lowest levels since 2018 and can only sustain about four days of supply at current export rates. While Aramco has access to global reserves, long-term Red Sea exports depend on new crude reaching the region. The broader concern lies in potential conflict escalation involving Iran-aligned Iraqi militias or Houthi forces advancing into Yemen's strategic Marib province. Europe is already feeling the impact as Saudi Aramco cancels and delays shipments for European refiners. While Europe can source alternative supplies, it will likely come at a higher cost due to limited spare capacity in global markets.
Topics: energy security Europe oil supply crisis Petroline pipeline attack Saudi Arabia