Saudi Aramco Cancels European Crude Cargoes as Key Pipeline Stays Shut
Saudi Aramco Cancels European Crude Cargoes as Key Pipeline Stays Shut Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and gas sector.
Her… Saudi Aramco has canceled or delayed crude deliveries to European refiners after the shutdown of the kingdom’s East-West pipeline cut into one of its remaining routes around the Strait of Hormuz.
At least three European refiners have had late-September cargoes canceled or pushed as far out as November, according to market sources cited by Argus.
Two more expect notices covering September supplies.
The 7-million-bpd East-West pipeline has been offline since a September 10 attack.
The pipeline carries crude from eastern Saudi oil fields to the Red Sea port of Yanbu, bypassing Hormuz.
One market source told Argus that every Saudi cargo scheduled for the final 10 days of September could be at risk.
The same source estimated that Yanbu had roughly five days of crude inventories remaining.
Argus could not independently confirm that estimate, and Aramco declined to comment.
In August, Bloomberg had reported that Aramco would supplyfull contractual crude volumesto at least three European refiners for September.
But no Saudi crude has departed Yanbu since September 11, according to Vortexa data cited by Argus.
Saudi exports from Egypt’s Sidi Kerir terminal averaged about 1.95 million bpd during the first two weeks of September.
| 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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