Saudi Arabia has not commented on reports indicating the cancellation or postponement of crude oil shipments to European refineries following last week's drone attacks on the country's East-West pipeline. The extent of the disruption in deliveries to Europe remains unclear.
Impact of Drone Attacks on Oil Exports
The Argus energy pricing agency reported on Tuesday that at least three European refineries are facing cancellations or delays of shipments scheduled for late September; in some cases, these delays will extend into November. The Saudi Ministry of Energy announced a precautionary shutdown last Friday following drone attacks on this pipeline in the Riyadh and Medina regions the day before. Saudi and Iraqi officials stated that the drones were launched from Iraqi territory.
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Review of Pipeline Status and Its Impacts
The Saudi Ministry of Energy has stated that technical teams are assessing the status of the pipeline, but the timeline for resuming pumping has not been determined. This pipeline transports crude oil from the eastern oil fields of Saudi Arabia to the port of Yanbu on the Red Sea, allowing the country to bypass the Strait of Hormuz for its exports. Tankers departing from Yanbu towards Europe head north towards the Suez Canal. Egypt's Sumed pipeline also provides an alternative route for transporting crude oil from the Red Sea to the Mediterranean.
U.S. Energy Secretary Chris Wright stated that the disruption in this pipeline will last “a few days.” Saudi Arabia's state oil company, Aramco, had not responded to requests for comment by the time this report was published.
Security Situation in Bab al-Mandab
The Saudi-led coalition announced on Wednesday that it intercepted a Houthi drone south of Mecca on Tuesday evening. The Houthis denied targeting the city. Iranian-backed Houthis in Yemen took control of the Bab al-Mandab Strait in the Red Sea last week after seizing the port of Mocha and its surrounding islands from the internationally recognized Saudi-backed government. This strait is located south of Yanbu and is on the direct route to Asia.
Tankers heading to Europe from Yanbu do not pass through this strait, but this waterway is a major trade route between Europe and Asia. Qatar warned on Tuesday that losing access to Bab al-Mandab would exacerbate the disruptions currently affecting shipping traffic from the Strait of Hormuz. Ibrahim bin Sultan Al Hashimi, media and communications director at Qatar's Ministry of Foreign Affairs, stated at a press conference in Doha that such a situation would be “catastrophic for the entire world” and called for international efforts to keep this waterway open.
Meanwhile, Mohammed bin Salman, the Crown Prince of Saudi Arabia, and Abdel Fattah el-Sisi, the President of Egypt, discussed the security of maritime routes in the region on Tuesday in Cairo. El-Sisi emphasized that the security of Saudi Arabia and Gulf countries is part of Egypt's national security and, while expressing support for Saudi Arabia's efforts to protect the kingdom, called for a political resolution to the Yemen crisis.
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