Updated
Updated · POLITICO · Sep 15
Saudi Pipeline Outage to Last Weeks, Threatening 4 Million Barrels a Day
Updated
Updated · POLITICO · Sep 15

Saudi Pipeline Outage to Last Weeks, Threatening 4 Million Barrels a Day

3 articles · Updated · POLITICO · Sep 15

Summary

  • Saudi Arabia’s damaged East-West pipeline will stay offline for weeks after drone strikes, extending a disruption to a key route that normally carries about 4 million barrels per day.
  • A monthlong shutdown would be a “large disruption,” Rystad Energy said, because crude bound for Asia would take longer and cost more to deliver; a longer outage could force a major reshuffling of global oil flows.
  • The hit also compounds pressure from the Houthis’ attacks on Saudi shipping in the northern Red Sea, narrowing alternatives for moving crude to customers.
  • In Yemen, the same fighting is accelerating a broader humanitarian crisis: more than 500 people were killed in the last week, nearly 94,000 displaced, and about 200 schools turned into shelters.
  • The renewed offensive threatens to unravel the relative calm since the 2022 truce and deepen a war that has already killed more than 150,000 people.

Insights

With Saudi Arabia's crucial oil bypass crippled, could the hidden perpetrators trigger a catastrophic global energy crisis?
If the Red Sea and Hormuz both become impassable, how many days until the world's oil reserves completely run dry?