Saudi Aramco has told at least two European refining customers they will receive no crude oil next month following an attack on the kingdom’s key East-West pipeline, Bloomberg News reported on Friday, citing people familiar with the matter.
European refiners typically buy Saudi crude under contracts guaranteeing monthly supplies, but Aramco has informed customers that deliveries planned for next month will not proceed, according to the report.
Saudi Arabia had earlier warned European customers that some cargoes would be cancelled after drone attacks damaged three pumping stations, forcing the shutdown of the pipeline and disrupting oil loadings at the Red Sea port of Yanbu.
The disruption has prompted refiners to seek alternatives. Poland’s Orlen, for example, has bought North Sea crude to replace disrupted Saudi imports, according to traders cited by Reuters.
Reuters could not independently verify the Bloomberg report. Aramco did not immediately respond to a request for comment.
Aramco is working to partially restart the pipeline within days and restore it to full capacity within six weeks, Bloomberg reported.
The company has also increased crude exports through the Gulf using ship-to-ship transfers off Oman’s Sohar port to offset reduced shipments through the Red Sea.
France calls for G7 energy meeting
The disruption comes as crude prices have risen about 20 percent this month amid the US-Iran conflict and fighting involving Houthi forces in Yemen.
French President Emmanuel Macron said on Friday that France would convene a G7 meeting on energy in the coming weeks to strengthen cooperation and discuss options for releasing strategic reserves.
“In the coming weeks, we will have a G7 meeting devoted to these energy issues,” Macron said.
The meeting would also provide an opportunity “to consider options for a possible release or unlocking of strategic reserves”, he added.
Macron said the surge in fuel prices was “not the result of government decisions” but a consequence of the geopolitical situation. He said existing support measures would be reviewed and adjusted to help households.
“Before spending vast sums of money, which is taxpayers’ money and would ultimately translate either into a higher deficit or higher taxes, we must above all remain focused on addressing the root causes,” Macron said.
