Saudi Arabia decided to leave Europe without oil

Saudi Aramco has notified at least 2 European refiners that they will not receive raw materials under long-term contracts next month. Bloomberg learned about this from a source. As a result, all European customers of the company will remain without shipments.

The reason was the attack of drones on the key Saudi highway “East – West”. After the impact, the pipeline stopped working. Europeans typically purchase Saudi oil under thermal contracts, long-term arrangements for regular monthly deliveries at predetermined prices and terms. No more volumes.

European buyers are urgently looking for a replacement. Poland's Orlen is already busy looking for other options, which is why prices for regional varieties are rising. This week, the benchmark Dated Brent briefly rose above $130 per barrel.

Aramco expects in the coming days to partially resume pumping and within 6 weeks to bring the pipeline to full capacity. Instead of Europe, the company began to offer Asian customers spot shipments through the Persian Gulf, again through the risky Strait of Hormuz, which it tried to avoid due to attacks on ships.

For Europe, this does not solve the problem. For such parties to reach the continent, they would have to either go through the Red Sea, where the Houthis attack Saudi ships, or circumnavigate Africa for almost 5 weeks. European refineries typically take Saudi oil from the Egyptian port of Sidi Kerir in the Mediterranean, linked to the Red Sea by a pipeline.

Iran denies US statement on record deliveries through Strait of Hormuz

Reliable news is always at hand - in the channel "MK" in MAX