Saudi pipeline outage risks disrupting 4 percent of global oil supply
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- A Saudi oil pipeline outage could put about four percent of global oil supply at risk if pumping is not restored within days, according to traders cited by Reuters.
- The disruption comes as global oil supplies face additional pressure from the ongoing US war on Iran and the closure of the Strait of Hormuz.
A disruption to a key Saudi oil pipeline could affect about four percent of global oil supply if pumping is not restored within days, Saudi oil buyers and traders told Reuters.
Oil traders warned that Saudi Arabia’s stocks held for export could run out if the outage continues, potentially adding further pressure to an already strained global oil market.
Saudi Arabia shut its East-West oil pipeline on Friday following a drone attack launched from Iraqi territory. The pipeline is a major route for transporting Saudi crude to ports on the Red Sea, allowing exports to bypass the Strait of Hormuz.
It remains unclear how extensive the damage is or how long repairs will take before pumping can resume.
The outage adds to disruptions affecting global energy supplies amid the ongoing US war on Iran and the closure of the Strait of Hormuz, a critical route for international oil shipments.
A prolonged disruption could further tighten supplies and increase pressure on oil prices as traders assess how quickly Saudi Arabia can restore pipeline operations.
