Saudi Arabia shifts to spot market sales and ship-to-ship transfers in the Gulf of Oman after drone attacks forced the closure of its key East-West pipeline, disrupting standard export routes.
Saudi Arabia's East-West pipeline shutdown disrupts crude supply, boosting spot oil prices.
Saudi Arabia has offloaded 20 million barrels of crude oil in the spot market following the shutdown of its critical East-West pipeline. The pipeline, which serves as a vital bypass to the Strait of Hormuz, was closed after drone attacks, forcing the Kingdom to utilize ship-to-ship transfers in the Gulf of Oman to maintain supply to Asian refiners.
The pipeline was shut down following drone attacks launched from Iraq, which threatened the integrity of the 750-mile-long infrastructure used to bypass the Strait of Hormuz.