Saudi Arabia could deprive the global market of 4% of oil supplies
The global market could lose up to 4% of oil supplies if Saudi Arabia does not resume operation of the East-West pipeline in the coming days.
The pipeline was shut down on Friday after drone attacks. It transported about 4 million barrels of oil per day from eastern Saudi Arabia to the port of Yanbu on the Red Sea, bypassing the Strait of Hormuz.
According to sources, oil reserves in Yanbu will be sufficient to maintain the current level of exports for only five to seven days. Additional reserves are available in the Egyptian ports of Ain Sokhna and Sidi Kerir.
The timeline for restoring the pipeline is not yet known. One of Reuters' sources suggested that repairs could take five to six weeks, while another believes a faster partial resumption of pumping is possible.
In August, oil production in Saudi Arabia fell to 6.2 million barrels per day, compared with 10.9 million in February.
