Saudi Arabia is facing a critical situation regarding its oil exports due to the closure of a major pipeline. The East-West oil pipeline was shut down following drone attacks on Friday, believed to be carried out by Iranian-backed groups in Iraq.
The extent of the damage and the timeframe for repairs have not been disclosed by Riyadh. This pipeline is crucial for rerouting oil across the Arabian Peninsula to Yanbu on the Red Sea, especially after the Strait of Hormuz was closed due to the conflict in Iran.
Industry sources, as per Reuters, have indicated that repair efforts could extend up to six weeks. This poses a threat to around 4 percent of the global oil supply. Given the pipeline’s closure, Yanbu’s capacity to maintain exports is limited to about five to seven days.
Efforts to reach the Saudi government for further comments have been made. As the situation develops, updates are expected to be provided.