Saudi Aramco told at least two European refining customers that they will be allocated no crude oil next month after the kingdom’s key pipeline was damaged.
European customers normally receive term contracts on Saudi Arabian crude, ensuring a steady supply of oil each month. Those deliveries will not be happening next month, and the decision applies to all European customers, according to unidentified sources because the information hasn’t been made public.
Saudi was forced to shut down its East-West pipeline last week after a drone attack The line is due to partially restart within days and be fully back up and running within six weeks, a person familiar with the matter said on Wednesday.
European countries imported 577,000 barrels a day from the Saudi pipeline in June.
Bloomberg had the original report.
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