Saudi Aramco Notifies European Refiners: Crude Oil Supply to Be Halted Next Month
nashnova research
Saudi Aramco has told all European buyers it will halt crude allocations next month after a drone strike shut the East-West pipeline — leaving refiners scrambling to cover a gap of nearly 580,000 barrels per day on the spot market.
What happened?
Bloomberg reports, citing people familiar with the matter, that Aramco has notified at least two European refining clients it will allocate no crude next month.
The decision applies to all European buyers. Aramco did not respond to a request for comment.
This means → not a client-specific adjustment — a blanket cut-off for Europe.
Why the sudden halt?
The direct cause: Saudi Arabia's East-West pipeline — the trunk line connecting eastern oil fields to Red Sea and Mediterranean export routes — was forced shut last week after a drone attack.
European clients normally receive steady monthly volumes under long-term contracts, picking up cargoes at the Egyptian Mediterranean port of Sidi Kerir, which is linked to the Red Sea by pipeline.
In plain terms = once the pipeline goes down, crude can no longer travel from Saudi Arabia's east coast to the Mediterranean — and European cargoes simply cannot ship.
When will the pipeline be back?
Sources say the pipeline is expected to partially resume within days, but a full restart will take roughly six weeks.
This means → even a partial restart leaves export capacity sharply reduced in the near term; next month's cut-off is all but certain.
How are European refiners responding?
The shutdown has already triggered panic buying. Poland's state oil company Orlen has issued more than ten tenders since last Friday, racing to secure alternative supply.
IEA data show OECD Europe imported an average of 577,000 barrels per day from Saudi Arabia in June this year.
This means → nearly 580,000 b/d must now be sourced from the spot market — the scramble for alternatives is likely to push up spot premiums on comparable crude grades.
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