Saudi oil buyers and traders warned that the global market could lose up to 4% of its oil supplies if the East-West pipeline does not resume operations. Saudi Arabia shut the pipeline on Friday following drone attacks, while 3 sources familiar with the matter said inventories at Yanbu were sufficient to maintain exports for only 5 to 7 days.
Additional inventories in Egypt
A fourth source said Saudi Arabia also had enough inventories to supply customers for several days from the ports of Ain Sokhna on the Red Sea and Sidi Kerir on the Mediterranean in Egypt.
Riyadh has not disclosed full details on the extent of the damage to the pipeline or how long the shutdown is expected to last, after it was temporarily closed as a precautionary measure.
Damage to pipeline facilities
Drones targeted the East-West pipeline last Thursday in the Riyadh and Medina regions, injuring several people and damaging pipeline facilities, according to Saudi Arabia’s Ministry of Energy.
Saudi Arabia and Iraq said the attack was launched from Iraqi territory. In its aftermath, the Iraqi government announced the dismissal of a military commander responsible for operations in Maysan province, near the border with Iran.
Saudi Arabia said it would not respond for the time being at the request of the Iraqi prime minister, while stressing that it reserved the right to take the necessary measures to protect its facilities.
A route bypassing the Strait of Hormuz
The East-West pipeline stretches about 1200 kilometers and transports oil from the Eastern Province to the port of Yanbu on the Red Sea, allowing Saudi Arabia to export crude through a route that bypasses the Strait of Hormuz.
In recent months, the pipeline has become a major route for Saudi oil exports amid disruptions to tanker traffic through the strait because of the war.
