Bloomberg: Saudi Arabia to suspend crude deliveries to EU buyers

Saudi Aramco has told at least two European refining customers that they will receive no crude oil next month after an attack on the kingdom’s key pipeline to the Red Sea, Bloomberg reports, citing people familiar with the decision.

European buyers typically receive Saudi crude under term contracts that guarantee regular monthly supplies. However, those deliveries will be suspended next month for all European customers, according to the people, who spoke on condition of anonymity because the information is not public.

Saudi Aramco did not immediately respond to a request for comment made outside normal business hours.

Saudi Arabia shut down its East-West pipeline last week after it was targeted by drones. The pipeline is expected to partially resume operations within days and return to full capacity within six weeks, a person familiar with the situation said on Wednesday.

European refineries generally receive Saudi crude through Egypt’s Mediterranean port of Sidi Kerir, which is linked to the Red Sea by pipeline.

The shutdown has prompted some Aramco customers to rush to secure alternative supplies. Poland’s Orlen SA has issued more than 10 tenders since Friday as it seeks replacement crude.

According to the International Energy Agency’s monthly Oil Market Report, European countries belonging to the OECD imported 577,000 barrels per day of crude from Saudi Arabia in June.

By Bakhtiyar Abbasov