Saudi Oil Exports at Risk as East-West Pipeline Remains Shut
Saudi Arabia may exhaust its exportable oil stocks within days if the East-West pipeline to the Red Sea stays closed, threatening up to 4% of global supply.
Saudi Arabia could run out of oil stocks available for export within days if its main East-West pipeline to the Red Sea remains out of service, according to traders tracking the situation.
The pipeline is a critical artery for Saudi crude, allowing shipments to bypass the Strait of Hormuz and reach Red Sea terminals. Its continued shutdown has raised concerns about Riyadh's ability to keep exports flowing at normal levels.
Market participants estimate that the disruption could remove as much as four per cent of global oil supply. That shortfall would land on an already tight market, adding further pressure to prices and heightening worries about energy security.
The warning comes amid ongoing clashes between Saudi forces and Houthi fighters, which have threatened infrastructure in the region. There is no indication yet of when work on the pipeline might resume.
If the outage persists, traders expect Saudi Arabia's available export stocks to be depleted quickly, leaving little buffer for the kingdom's customers. The situation remains fluid, with attention focused on whether repairs can restore the link to the Red Sea in time to avert a broader supply crunch.