Saudi pipeline outage threatens loss of 4% of global oil supply
Saudi Arabia will run out of oil stocks for export if it does not restart its major pipeline to the Red Sea within days, leading to a loss of up to 4 per cent of global supply, Saudi oil buyers and traders said. The pipeline was shut on Sept 11 after drone attacks, and Yanbu now has stocks to maintain exports for just five to seven days, according to three industry sources. Saudi oil supply has already fallen to a more than three-decade low in August, the International Energy Agency said on Sept 11.
Why it matters: The disruption affects global energy supply and trade flows, as the pipeline rerouted around 4 million barrels per day, or 4 per cent of global supply, and its continued shutdown could worsen the global supply crunch.