Saudi Arabia is facing multiple challenges in its oil export and refining chain as of September 2026. Drone attacks on the strategic East-West pipeline, which transports oil from production areas in eastern Saudi Arabia to the port of Yanbu, have damaged three pumping stations and disrupted the flow of oil to this port. Reports indicate that some of Saudi oil shipments to European refineries have been canceled or delayed.
Details of the Attacks and Their Impacts
On September 11, Saudi Arabia announced that the strategic East-West pipeline had been temporarily halted due to drone attacks. Saudi officials stated that these drones were launched from Iraqi territory. As of the publication of this report, responsibility for the attack has not been definitively attributed to any specific group. Additionally, on September 16, Yahya Saree, a spokesman for Yemen's Ansar Allah, announced that Aramco facilities in Yanbu had been targeted with dozens of ballistic missiles and drones. These two attacks occurred separately, and their impacts on Saudi energy infrastructure are simultaneously observable.
Read more: Discovery of a Tanker Shipment Carrying 10 Million Barrels of Oil on the Sanctioned Route
Cancellations of Shipments and Efforts to Secure Alternative Oil
In light of recent disruptions, reports indicate that Saudi Arabia has canceled or postponed part of the crude oil shipments planned for European customers. At least three European refineries have faced these issues, and in some cases, deliveries may be delayed until November. For instance, the Polish company Orlen, which sources about 40% of its oil needs from Aramco, has been seeking to procure oil from other markets due to reduced Saudi shipments and has purchased North Sea grades.
Simultaneously with these challenges, Saudi Arabia has been making efforts to secure diesel and gasoline from the Mediterranean market. Aramco has submitted purchase offers for thousands of tons of diesel in the Platts trading window and has also been seeking to source gasoline from Europe. This increase in Aramco's buying activity began before the recent attack on the pipeline, and not all new diesel demand can be attributed to the recent disruptions.
Moreover, the Jazan facilities on the Red Sea coast have also been targeted multiple times in recent months. Given the existing limitations in the oil reserves at Yanbu, it is expected that the inventory at these facilities may only suffice to maintain exports at the usual level for five to seven days.
Read more: New Sanctions on Saudi Tankers and Their Impact on Global Oil Supply · Discovery of 74,000 Liters of Smuggled Fuel in Zahaklot, Kerman
