Asian oil refiners are waiting for confirmation on cargo loadings from the Red Sea port of Yanbu after a key Saudi pipeline feeding the terminal was taken offline following a drone strike. According to traders involved in the discussions, at least four refining companies have sought updates on the facility's operational status but have yet to receive an official response.
Traders noted that sales executives at the Saudi marketing division have also remained silent on inquiries regarding the condition of the East-West pipeline. Despite the lack of formal notification about potential delays, two of the refiners still anticipate lifting their scheduled cargoes as originally planned. Saudi state-owned oil giant Saudi Aramco declined to comment on the matter.
On Friday, Saudi Aramco announced it had shut down the pipeline connecting inland oil fields to the Red Sea as a precautionary measure following an unmanned aerial vehicle attack originating from Iraq. This assault on critical infrastructure marks a significant escalation in hostilities, coming amid ongoing attacks by Iranian-backed Houthi rebels on Saudi energy facilities and their territorial advances in Yemen.
The U.S.-Iran conflict has already constrained crude exports through the Strait of Hormuz, making the Yanbu terminal and the East-West pipeline increasingly vital for Riyadh. For most of the period since the conflict erupted, Saudi Arabia has shipped roughly 5 million barrels of crude daily via the port; however, after the Houthis declared a blockade on Saudi ports in late July and began targeting Red Sea vessels, throughput at the terminal has dropped to about half its previous level.
Sumit Ritolia, senior modelling manager at energy analytics firm Kpler, commented: "Multiple critical oil transit routes were already under strain, and the shutdown of Saudi's East-West pipeline further constrains routing options for Asian refiners. While supply diversification can mitigate disruption risks, it cannot fully offset the cost pressures when several major oil arteries face simultaneous stress."