Satellite images show extent of damage to major Saudi pipeline, amid global oil supply fears
Saudis yet to provide details about damage from drone attack to key east-west pipeline to Red Sea that could affect 4% of global oil supply
TL;DR
- Drone attacks on Friday have damaged a key Saudi east-west pipeline, impacting oil exports through the Red Sea.
- The pipeline transports approximately 4 million barrels per day, representing about 4% of global supply.
- Saudi Arabia has only enough oil stocks for 5-7 days of exports from the Red Sea port of Yanbu without the pipeline operating.
- The extent of the damage and repair duration are uncertain, with estimates ranging from weeks to potentially faster partial resumption.
- This disruption threatens to worsen the global oil supply crunch, leading to higher fuel prices and inflation.
- The attacks are attributed to Houthi forces, who have expanded their control in the Bab al-Mandab strait.
- Riyadh has blamed militants in Iraq for the drone attacks.