Saudi Arabian pipeline outage threatens global oil supply

Saudi oil traders and buyers warned that the kingdom will exhaust its export reserves if it fails to restart its major Red Sea pipeline within days, risking a loss of up to 4 percent of global oil supply. Drone attacks originating from Iraq forced Riyadh to shut down its massive East-West pipeline, exacerbating the global supply crisis and pushing fuel prices to unprecedented levels since the onset of US-Iran tensions.

Saudi Arabia will run out of oil stocks for exports if it doesn't restart its major pipeline to the Red Sea within days, leading to a loss of up to 4 percent of global supply, Saudi oil buyers and traders told Reuters on Sunday.

A further decline in Saudi flows will worsen the global supply crunch, which has already pushed global fuel prices to record highs since the start of the US-Iran war.

Following the drone attacks launched from Iraq forced Saudi Arabia to shut its huge East-West oil pipeline on Friday, Riyadh has not given full details about the extent of the damage or how long the route will stay offline.

Sources that spoke to Reuters gave varying estimates, with one saying the damage could take as long as five to six weeks to repair, while another said it could be fixed sooner and could resume pumping partially while repairs are ongoing.

Saudi Arabian pipeline outage threatens global oil supply

For Context

Houthi missiles target military base in Saudi Arabia as Iraq probes drone attack on oil pipeline

Sweden votes as migration, crime and economy dominate high-stakes election

Beijing bans drone possession in the city after earlier moves to tighten rules