Saudi Oil Crisis Is About to Hit Europe
Continental Strikes Venezuela Oil Deal with PDVSA Tom majored in International Business at Amsterdam’s Higher School of Economics and later completed an Executive MBA in Energy Transition at the University of Groningen.… Saudi Arabia’s oil supply crisis is rapidly becoming Europe’s problem.
The September 10attackson Saudi Arabia’s East-West Pipeline struck the system at multiple locations and damaged at least one pumping station, forcing Riyadh to shut down the Kingdom’s critical alternative to the Strait of Hormuz.
The 1,200-kilometer Petroline can carry around 7 million barrels per day from Saudi Arabia’s eastern producing regions to Yanbu on the Red Sea.
Since the war effectively closed Hormuz, it has become one of the most important pieces of energy infrastructure in the world.
Kpler estimates the pipelinehad been movingroughly 4 million bpd around Hormuz before the attack.
A prolonged outage could ultimately threaten 3.5–4 million bpd of Saudi crude exports.
The figure is below Petroline’s nameplate capacity because Saudi Arabia can still export some crude from eastern terminals such as Ras Tanura, despite the severe constraints on Gulf shipping.
Kpler estimates crude inventories at Yanbu have fallen below 15 million barrels, down from almost 21 million barrels in July and near their lowest levels since 2018.
At an export rate of 3.5 million bpd, that represents little more than four days of theoretical supply.
Aramco can also draw on its global storage network, but sustained exports from the Red Sea ultimately require fresh crude to reach Yanbu.
The bigger danger, however, is where the conflict goes next.
Saudi Arabia says the drones that attacked Petrolineoriginatedfrom Iraq, raising the possibility of retaliation against Iran-aligned Iraqi militias.
| 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% |
Comments
Post a Comment