Saudi Arabia has cut oil supplies to Europe
Saudi Arabia has cut oil supplies to Europe after drones damaged the East-West pipeline, which runs to the Red Sea, bypassing the Strait of Hormuz.
This was reported by Reuters, citing sources among oil traders.
According to the agency, Saudi Arabia notified European customers of the cancellation of some crude oil deliveries scheduled for September. In addition, oil loading at the port of Yanbu on the Red Sea coast was suspended.
The situation has forced Poland and other major buyers to urgently look for alternative suppliers. The cost of individual oil cargoes has meanwhile exceeded $120 per barrel.
According to Reuters' sources, the reduction in Saudi oil supplies via the Red Sea could force the kingdom to increase export volumes through the Strait of Hormuz, including through so-called shadow deliveries, which are already being used by the UAE and Iraq.
