Saudi Arabia’s state-backed oil giant, Aramco, has reportedly cut its crude exports to European customers for September and October while shifting more barrels to Asian buyers as the kingdom's energy trade routes remain under pressure amid the Middle East conflict.
What happened: Saudi Aramco has reportedly halted crude deliveries to at least two European refiners for next month following the closure of the East-West Pipeline, Bloomberg reported on Friday.
Much of Aramco’s Europe-bound crude had been shipped from the Red Sea port of Yanbu, which is supplied by the pipeline also known as the Petroline. It was damaged in a drone attack last week, forcing Saudi authorities to close it for repairs. Riyadh said the attack originated in Iraq, home to Iran-aligned militants.
The Petroline had become a critical export route amid disruption in the Strait of Hormuz, carrying between 4 million and 5 million barrels per day of crude from Ras Tanura to Yanbu.
With that route unavailable, Saudi Arabia is shifting more supplies toward Asian buyers. The kingdom has reportedly sold about 60 million barrels of crude for shipment from Ras Tanura through the Strait of Hormuz to Oman’s Sohar port, where it will be transferred to other tankers this month and next, multiple trading sources told Reuters on Friday.