Saudi Arabia Sells 20 Million Barrels Spot Crude After 750-Mile Pipeline Shutdown
Updated
Updated · OilPrice.com · Sep 16
Saudi Arabia Sells 20 Million Barrels Spot Crude After 750-Mile Pipeline Shutdown
3 articles · Updated · OilPrice.com · Sep 16
Summary
As many as 20 million barrels of Saudi crude were sold this week in the spot market for pickup outside the Strait of Hormuz, with cargoes loading this month and next.
Drone attacks launched from Iraqi territory near the Iranian border forced Riyadh late last week to shut the 750-mile East-West pipeline, its key route for bypassing Hormuz after the waterway closed to shipping.
Chinese refiners—both state-owned majors and independents—plus other East Asian processors were the main buyers, taking cargoes via ship-to-ship transfers in the Gulf of Oman rather than sending tankers into the Persian Gulf.
The outage has already disrupted regular flows: Aramco reportedly canceled or delayed some September deliveries to European refiners, underscoring how quickly Gulf export logistics are being rerouted.