Dubai. Saudi Arabia's oil company Aramco has told at least two European refining customers that they will not receive crude oil deliveries in the next month i.e. October. News agency Bloomberg has given this information quoting people familiar with the matter. European refiners usually buy Saudi crude every month under long-term contracts from Aramco, but October deliveries have been put on hold this time.
What was the impact of the attack on the pipeline?
This decision has come after the drone attack on Saudi Arabia's important East-West pipeline. The attack caused the pipeline to be shut down and three pumping stations damaged. Due to this, the loading of oil from Yanbu port located on the Red Sea coast was also affected. Saudi Arabia had already informed European customers about the cancellation of some crude oil shipments.
What are European refiners doing now?
After this interruption in oil supply, European refiners have started procuring crude oil from other sources. Polish refining company Orlen is also looking for alternative supplies. According to traders, the company has purchased North Sea crude oil instead of Saudi oil. This shows that pipeline disruptions are also impacting purchases from European refiners.
When will Aramco start the pipeline?
Aramco is trying to partially restart the pipeline within a few days and bring it back to full capacity in about six weeks, Bloomberg reported. However, Amar Ujala does not independently verify this information.
What did Saudi Arabia do to replenish the oil?
To make up for the shortfall in oil supply via the Red Sea, Aramco has increased crude oil exports via the Gulf. The company is transferring oil from one ship to another in the sea near Oman's Sohar port. Its purpose is to compensate to some extent the reduced amount of oil from the Red Sea.
Who attacked?
The most important information so far regarding the drone attack on Saudi Arabia's East-West oil pipeline is that the drones were launched from Iraqi soil. The Saudi Foreign Ministry had said that several drones targeted the pipeline located in Riyadh and Medina areas. After the attack, the pipeline had to be closed as a precaution and several people were injured. However, which organization sent these drones has not been officially confirmed yet and no group has claimed responsibility for the attack.
What did Iraq do?
Iraq started an investigation after information came to light that the drone used in the attack was launched from Iraq. According to Reuters, Iraq also launched a security operation to locate and capture those responsible. It is clear from this development that the source of the attack is being said to be Iraqi territory, but the identity of the attacking organization is a different issue.
Why keep an eye on Iran-backed militia?
This entire matter is not being viewed in isolation from the broader regional tensions of that time. Reuters reported that during the attack, activities of Iran-linked militias and Yemen's Houthi group also increased in the area. However, on this basis alone it would not be correct to say that the attack on the pipeline was carried out by a specific Iran-backed organization. Till now no organization has taken responsibility for this. Yemen's Houthi group had during this time talked about targeting the energy facilities of Saudi Arabia, but the Houthis have not taken responsibility for this particular East-West Pipeline attack.