Australia's Energy Minister Heads to Saudi Arabia for Pipeline Answers
Drone Strikes Cripple Half of Russia's Top Diesel Refineries Kazakhstan and Kyrgyzstan are tightening… Australian Energy Minister Chris Bowen will travel to Saudi Arabia next week to meet with Saudi Energy Minister, Prince Abdulaziz bin Salman, and get the latest updates on the state of operations and oil supply after the Kingdom shut down the East-West pipeline following drone attacks late last week.
Bowen will meet with Prince Abdulaziz bin Salman to “get direct from him the situation” about the pipeline, the Australian minister toldABC Newsin an interview.
“Getting the best information about the state of the pipeline, when it will return to more normal levels, what the approach of the Saudi Arabian government is will be key for ensuring that fuel security over coming weeks and months,” Bowen said.
Saudi Arabia was forcedto temporarily shut downthe East-West oil pipeline following drone attacks launched from the territory of Iraq close to the Iranian border.
The shutdown of the pipeline is a precautionary measure, after the attacks resulted in a number of injuries, the world’s top crude oil exporter said.
The repairs could take three to five weeks, two regional officials briefed on the matter toldThe Associated Press.
The pipeline, on which Saudi Arabia has relied to export about 4 million barrels per day (bpd) from the Red Sea instead of the Strait of Hormuz since the Iran war began, may work partially during the repairs, one of AP’s sources said.
However, the source couldn’t say how much crude oil could be shipped via a partially-operational pipeline.
Despite the fact that it is a major gas and LNG producer, Australia relies on imports for most of its transportation fuel supply.
The situation became worse aftera fire broke outat one of the only two refineries in the country in the early weeks of the Iran war.
At the end of March, the Australian governmenthalved the fuel exciseon gasoline and diesel for three months in a bid to alleviate financial stress from spiking fuel prices.
There are rumors the fuel excise may be reinstated, but the government is reluctant to do so, although it is not ruling out another excise cut if oil and fuel prices keep rising.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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