Saudi Arabia could face a major disruption to its oil exports if a key pipeline to the Red Sea is not restored within days.
Oil buyers and traders told Reuters that the shutdown could eventually remove up to 4% of global oil supply from international markets.
The disruption follows drone attacks that forced Saudi Arabia to shut its East-West Pipeline on Friday.
Saudi Oil Stocks Could Run Out Within Days
The East-West Pipeline normally transports around 4 million barrels of oil per day to Yanbu on the Red Sea.
That route has become increasingly important because shipping through the Strait of Hormuz has been heavily disrupted by the regional conflict.
Industry sources said Yanbu currently has enough oil stocks to maintain exports for only five to seven days.
Saudi Arabia also holds stocks at Egypt’s Ain Sukhna and Sidi Kerir terminals, providing additional short-term support.
However, those reserves are also limited and could eventually run out if the pipeline remains offline.
Pipeline Repairs Could Take Weeks
Saudi authorities have not yet provided a detailed assessment of the damage or confirmed how long repairs will take.
Industry sources gave different estimates for the repair timeline.
One source said restoring the pipeline could take five to six weeks, while another said partial pumping could resume sooner while repair work continues.
The Saudi Energy Ministry and government media office have not immediately provided further details.
Global Oil Market Faces Greater Supply Pressure
The pipeline shutdown comes as global oil markets are already facing severe supply disruptions.
The International Energy Agency said Saudi oil supply reached a more than three-decade low in August because of reduced flows through the Strait of Hormuz and the Red Sea.
The IEA estimates that global oil supply could fall by 5.7 million barrels per day, or around 6%, this year.
Before the conflict, the Middle East supplied roughly 22 million barrels of oil per day.
Oil flows through the Strait of Hormuz have now fallen to an estimated 6 million to 9 million barrels per day, according to industry sources.
Saudi Arabia also reported that its production fell to around 6.2 million barrels per day in August, compared with 10.9 million barrels per day in February.
A prolonged pipeline shutdown could therefore further tighten global supplies, increase fuel prices and add to inflationary pressures worldwide.
