Saudi crude pipeline shutdown risks 4% global supply loss
Saudi Arabia faces a potential 4% drop in petroleum exports if its main Red Sea pipeline is not restarted soon. Drones forced the closure of the East-West line on Friday, with repair timelines estimated between five and six weeks by industry sources.
Oil buyers and Saudi traders warned that the Kingdom would lose export capacity if it does not restart its primary pipeline to the Red Sea within days. The shutdown threatens a global supply shortfall of up to 4%. Since drone attacks on Friday forced the closure of the massive East-West desert crossing, complete details on the damage extent and repair duration remain unconfirmed by Riyadh's press office or Ministry of Energy. Sources speaking with Reuters provided conflicting timelines for the fix. One indicated repairs could take five to six weeks. Another suggested a faster turnaround is possible, potentially allowing partial operation while major fixes continue. This interruption would worsen global fuel scarcity, which has already pushed worldwide energy prices to historic highs and driven U.S. Treasury yields to levels not seen since the 2008 financial crisis. Prior closures of other infrastructure limited Saudi impact from the recent Ormuz Strait war lockdown over the last six months.
