Saudi Arabia’s pipeline outage threatens up to 4% of global oil supply
A shutdown of Saudi Arabia's East-West pipeline has created significant risks for the global oil supply, potentially impacting up to 4% of total production. The outage occurred following attacks that disrupted the land route to the Yanbu port on the Red Sea. While the pipeline typically facilitates the movement of 4 million to 5 million barrels per day—allowing exports to bypass the Strait of Hormuz—Saudi authorities have characterized the shutdown as a "precautionary" measure, offering no specific timeline for resumption. Current export stocks at Yanbu are estimated to last only 5–7 days. The disruption comes at a sensitive time as global inventories have already seen a decline of approximately 95 million barrels in August. The primary concern for the market is whether new oil can reach the Yanbu port quickly enough to prevent shipment delays once local inventories are exhausted.