Saudi Arabia said on Sept. 12 that it had temporarily shut its roughly 1,200-kilometer East-West oil pipeline after an attack on the key route, according to BlockBeats. The pipeline links major oil fields in eastern Saudi Arabia with the Red Sea port of Yanbu and serves as a major export route that bypasses the Strait of Hormuz.
Saudi Arabia’s energy ministry described the move as a precautionary measure and did not give a timeline for reopening. The foreign ministry said the pipeline was hit by a drone attack launched from the direction of Iraq and added that Riyadh would not retaliate for now.
At the same time, the Iran-backed Houthis have continued attacking Saudi energy facilities and moving toward the Bab el-Mandeb Strait, raising risks for Red Sea shipping. Oil markets have already reacted to the supply threat. Brent crude settled at $104.56 a barrel on Friday, up more than 8% for the week. In August, Saudi crude exports via Yanbu were only about 2.5 million barrels a day, the lowest level since 2013. With alternative export routes facing disruption, the market is reassessing the likelihood of a broader interruption to global oil supplies.
Saudi Arabia has temporarily shut its roughly 1,200-kilometer East-West oil pipeline after an attack on the key export route, BlockBeats reported on Sept. 12.
The pipeline connects major oil fields in eastern Saudi Arabia with the Red Sea port of Yanbu. It is one of the kingdom’s main channels for exporting crude without passing through the Strait of Hormuz. Saudi Arabia’s energy ministry said the shutdown was a 「precautionary measure」 and has not announced when operations will resume.
Saudi Arabia’s foreign ministry said the pipeline was targeted in a drone attack launched from the direction of Iraq. It also said there would be no retaliation for now. At the same time, the Iran-backed Houthis have continued attacking Saudi energy facilities and have been advancing toward the Bab el-Mandeb Strait, increasing risks to Red Sea shipping.
Oil markets moved quickly to price in the supply threat. Brent crude settled at $104.56 a barrel on Friday, taking its gain for the week to more than 8%.
In August, Saudi crude exports through Yanbu were only about 2.5 million barrels per day, the lowest level since 2013. With alternative export channels facing disruption, pressure is building on Saudi Arabia’s supply capacity. With both the Strait of Hormuz and the Bab el-Mandeb Strait facing risk at the same time, the market is reassessing the possibility of a disruption to global crude supply.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
