Asian oil refiners are actively seeking information from Saudi Arabia regarding the status and projected restart of the East-West crude pipeline, which was shut down following attacks. This disruption is causing significant concern among refiners, as the pipeline is a crucial route for bypassing the Strait of Hormuz and its closure has immediate implications for their crude supplies and operational planning.
The pipeline's closure has deepened a global energy crunch, pushing oil prices higher. Brent crude approached $108 a barrel, while West Texas Intermediate neared $103. The uncertainty surrounding the pipeline's operational timeline is leading to anxieties about potential supply shortages and increased costs for crude oil, which could impact refined product prices and overall market stability. The lack of clear communication from Saudi Arabia about the duration of repairs is exacerbating the situation for these refiners.
Saudi Arabia had halted the East-West pipeline as a precautionary measure after attacks, with satellite images showing damage to facilities. This outage threatens the loss of up to 4% of global oil supply if the pipeline is not restarted within days, according to Saudi oil buyers and traders. The kingdom reportedly has oil stocks in ports sufficient for only 5-7 days to maintain current export levels, underscoring the urgency of the situation.
