This picture taken on December 11, 2019, shows an oil tanker at the port of Ras al-Khair, about 185 kilometres north of Dammam in Saudi Arabia's eastern province overlooking the Gulf.
This picture taken on December 11, 2019, shows an oil tanker at the port of Ras al-Khair, about 185 kilometres north of Dammam in Saudi Arabia's eastern province overlooking the Gulf. Photo by GIUSEPPE CACACE / AFP via Getty Images

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Saudi Aramco told at least two oil refining customers in Europe that they will be allocated no crude oil next month after the kingdom’s key pipeline to the Red Sea was attacked, people informed of the decision said.

Financial Post

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European customers normally receive Saudi Arabian crude on so-called term contracts, ensuring a steady flow of supply every month. Those deliveries will not take place next month, the people said, asking not to be identified because the information isn’t public. The decision applies to all European buyers, they said.

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Saudi Aramco didn’t immediately respond to a request for comment made outside normal working hours.

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Saudi Arabia was forced to shut its East-West pipeline last week after it was attacked by drones. The line is due to partially restart within days and be fully back up and running within six weeks, a person familiar with the matter said on Wednesday.

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European refineries typically lift Saudi crude from Egypt’s Mediterranean port of Sidi Kerir, which is connected to the Red Sea via a pipeline.

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The pipeline halt caused panic buying from some of Aramco’s customers. Poland’s Orlen SA issued more than ten tenders since Friday in a race to secure alternative supplies.

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European countries in the OECD  imported 577,000 barrels a day of crude from Saudi Arabia in June, the International Energy Agency said in its monthly Oil Market Report.

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With assistance from Anthony Di Paola

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