Saudi Arabia halts oil loadings at Yanbu after pipeline attack
The suspension follows an earlier strike on the East-West pipeline, which normally moves 4 to 5 million barrels a day around the Strait of Hormuz, according to Reuters' own reporting.
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Saudi Arabia has suspended oil loadings at its Red Sea port of Yanbu following an earlier attack on the East-West pipeline that feeds it, shipping sources said.
The pipeline normally carries 4 to 5 million barrels a day, acting as Saudi Arabia's route for exports that would otherwise have to pass through the Strait of Hormuz, according to Reuters' own reporting. Satellite imagery reviewed by Reuters showed two pump stations along the pipeline were hit in a September 10 drone attack, including one that had been targeted before.
Brent crude rose 2.8% to $107.55 a barrel when the pipeline shutdown was first reported, according to market data cited by Reuters. Saudi officials have said the pipeline may run at reduced capacity but have not specified by how much. Britain's Burnham has agreed to send UK military advisers to Saudi Arabia and is considering further requests for help against Houthi attacks on oil infrastructure, according to a UK government statement.
The loss of loadings at Yanbu removes what had been one of the few outlets still available for Saudi exports while the pipeline is down. With Saudi storage capacity covering only 5 to 7 days of output, the halt tightens the supply shock further, even though the earlier jump in Brent had already priced in much of the disruption risk.