Aramco halts October crude deliveries to some European refiners after pipeline attack, Bloomberg reports

• European refiners with term contracts guaranteeing monthly supplies will receive no Saudi crude in October due to the pipeline attack
• Aramco plans to partially restart the pipeline within days and return to full capacity within six weeks
• Saudi Arabia has begun using ship-to-ship transfers off Oman's Sohar port to offset reduced Red Sea shipment volumes

Summary

Saudi Aramco has halted all October crude oil deliveries to at least two European refiners following a drone attack on Saudi Arabia's critical East-West pipeline, according to Bloomberg News. The attack damaged three pumping stations and disrupted operations at the Red Sea port of Yanbu, forcing the cancellation of contracted monthly supplies to European customers.

Key Developments:

The disruption affects refiners operating under term contracts that typically guarantee monthly crude deliveries. Poland's Orlen is among the companies impacted and has already sought alternative supplies, purchasing North Sea crude grades to compensate for the lost Saudi imports.

Recovery Timeline:

Aramco is working to partially restart the pipeline within days, with full capacity restoration expected within six weeks, according to sources cited by Bloomberg.

Mitigation Efforts:

To offset reduced Red Sea shipments, Saudi Aramco has increased crude exports from the Persian Gulf using ship-to-ship transfers off Oman's Sohar port, providing an alternative export route during the disruption.

Market Implications:

The supply disruption adds pressure to European refiners already navigating tight energy markets. The incident highlights vulnerability in Saudi Arabia's export infrastructure and may contribute to crude price volatility. The forced cancellation of contracted deliveries represents a significant departure from normal operations, as term contracts typically ensure supply reliability.

Saudi Aramco has not yet responded to requests for comment. The attack and subsequent supply disruption underscore geopolitical risks affecting global oil markets and the strategic importance of Saudi Arabia's export infrastructure to European energy security.