Recent drone attacks on Saudi Arabia’s east-west pipeline have caused significant damage, threatening to disrupt up to 4% of global oil supply. Satellite images reveal a pumping station severely charred, raising concerns about how quickly the pipeline can be restored. Without repairs, Saudi Arabia risks exhausting its export stocks within days, which would further exacerbate the ongoing global fuel crisis.
The pipeline has been crucial for rerouting around 4 million barrels of oil per day to the Red Sea, effectively shielding Saudi exports from disruptions in the strait of Hormuz. With this vital route offline, existing stocks at the port of Yanbu are projected to last only five to seven days, putting immense pressure on global oil prices already at record highs.
As the conflict escalates, the international benchmark Brent crude surged over 3.4%, reaching $108 per barrel. This price hike is expected to ripple through to consumers, affecting petrol and diesel costs, with diesel prices in the US recently exceeding $6 a gallon.
The situation is compounded by the Houthis’ recent territorial gains and their blockade on Saudi oil infrastructure. The ongoing conflict, now in its seventh month, highlights the fragile state of Middle Eastern geopolitics, with potential implications for global energy security and inflation rates worldwide.
Source: The Guardian
