Saudi Yanbu halt deepens oil strain as Europe scrambles for crude
European crude importers are racing to secure new oil shipments as markets brace for the loss of up to 4% of global supplies into October following attacks on Saudi oil infrastructure.
Oil markets are facing fresh uncertainty amid reports that Saudi Arabia has suspended loadings at the Red Sea port of Yanbu, sending European refiners scrambling for replacement crude as disruptions around the Strait of Hormuz continue.
What happened: Saudi Arabia has suspended oil loadings at the Red Sea port of Yanbu, Reuters reported on Tuesday, citing shipping industry sources, just days after Aramco was forced to take the East-West pipeline out of service following attacks that Riyadh blamed on Iraqi militias.
Yanbu is the main outlet for Saudi crude transported through the East-West pipeline, which has a total capacity of 7 million barrels per day and carries oil from the kingdom’s eastern production centers to the Red Sea and allows Aramco to bypass the Strait of Hormuz.
Customers are already grappling with a sudden loss of supplies. Citing unnamed industry sources, Argus Media reported on Tuesday that Aramco has begun delaying or canceling some crude shipments to European customers. At least three European refiners have had September cargoes pushed back or canceled, while others expect similar disruptions. Argus reported that all Saudi cargoes scheduled to load during the final 10 days of September could be at risk.
