Aramco tells Europe: no oil next month
Saudi Aramco has informed at least two European oil-refining customers that no crude volumes will be allocated to them next month, following an attack on a key pipeline, Bloomberg reported, citing people familiar with the decision.
European customers typically receive Saudi crude under term contracts guaranteeing a regular monthly supply, but these deliveries will not take place next month, with the decision applying to all European buyers, the people said.
Saudi Arabia was forced to shut its East-West pipeline last week after a drone attack. Sources said on Wednesday that the line is expected to partially resume operations within days and return to full capacity within six weeks.
European refiners typically import Saudi crude via Egypt's Sidi Kerir port on the Mediterranean, which is linked to the Red Sea by pipeline. The pipeline's closure has triggered panic buying among some Aramco customers, with Poland's Orlen issuing more than ten tenders since Friday in a scramble to secure alternative supply.
According to the International Energy Agency's monthly oil market report, OECD European countries imported 577,000 barrels a day of Saudi crude in June.
