Saudi Aramco has informed at least two European refineries that it will not deliver crude oil to them next month, following a drone attack on Saudi Arabia's main pipeline to the Red Sea, according to sources cited by Bloomberg.
European customers typically source Saudi crude through contracts that ensure fixed monthly quantities. These deliveries will not take place next month, while, according to the same sources, the decision concerns all European buyers.
Saudi Arabia shut down the East-West pipeline last week after a drone attack.
The pipeline is expected to partially reopen in the coming days and return to full operation within six weeks, according to a person familiar with the matter.
European refineries typically receive Saudi crude from Egypt's Mediterranean port of Sidi Kerir, which is connected to the Red Sea via a pipeline.
The outage has sparked intense mobilization among Aramco customers looking for alternative sources of supply. Poland's Orlen SA has launched more than 10 tenders since Friday, in an effort to secure other supplies.
In June, European OECD countries imported 577,000 barrels of crude per day from Saudi Arabia, according to the International Energy Agency's monthly oil market report.
