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Saudi Aramco has informed at least two European refining customers that they will receive no Saudi crude oil in October under their long-term supply contracts, following an attack that disrupted the kingdom’s key East-West pipeline, according to Bloomberg sources cited by Reuters.
European refiners normally receive Saudi crude through term contracts that guarantee regular monthly supplies.
The reported cancellation is expected to force European buyers to seek alternative sources of crude.
The East-West pipeline, which transports oil from Saudi Arabia’s eastern production areas to the Red Sea port of Yanbu, was shut down after drone attacks damaged three pumping stations.
The disruption has affected crude loadings from Yanbu, a key route for supplying European markets.
Poland’s Orlen has already sought alternative supplies, including North Sea crude, to replace disrupted Saudi imports, Reuters reported.
Aramco is reportedly working to partially restart the pipeline within days and restore it to full capacity within about six weeks.
The company has not publicly confirmed the reported cancellation of October supplies.
Meanwhile, Aramco has increased crude exports from its Gulf port of Ras Tanura, using ship-to-ship transfers near Oman’s Sohar port.
About 60 million barrels are expected to be exported through this route in September and October, with major buyers including China, South Korea, India and Japan.