RIYADH: As Saudi Arabia has halted crude oil supply to Europe following drone attacks by an Iraqi militia on the East-West oil pipeline, Europe is facing a severe shortage of petroleum, with prices reaching a record high.
A few days ago, the Saudi Foreign Ministry said that drone attacks were launched from Iraq on the East-West oil pipeline, as a result of which several people were injured. Saudi Arabia had temporarily shut down the East-West oil pipeline after it was targeted by Iraqi drones in the Riyadh and Medina regions.
However, Saudi Arabia has now also halted crude oil supply to Europe. According to foreign media, Saudi Aramco has canceled and postponed crude oil cargoes to European refineries. Saudi Arabia’s decision has sent a wave of concern across Europe.
It is important to note that due to the Iran-US war, the Strait of Hormuz has remained largely closed, due to which, for the last 6 months, Saudi Arabia’s East-West pipeline has been a crucial route for the global supply of Middle Eastern oil.This pipeline used to transport 4 million to 5 million barrels of oil per day.US Energy Secretary Chris Wright said that the pipeline can be reopened within a few days. According to the British news agency, repairs could take 3 to 6 weeks.
When the pipeline stopped, Saudi Aramco canceled and delayed cargoes to European refineries, creating fears of diesel and crude shortages. Analysts said a month-long disruption could keep up to 120 million barrels off the market.
At the same time, Houthi rebels seized Perim Island at Bab el-Mandeb, the exit of the Red Sea, putting pressure on both sides of the Arabian Peninsula. This pipeline was built 45 years ago for exactly this scenario. Now that it is also under attack, it threatens the last alternative route for Middle East oil to Europe.
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