Saudi Aramco has announced a suspension of crude oil deliveries to two European refineries following a drone attack on the kingdom’s main pipeline that feeds into the Red Sea. Specifically, the Saudi state oil company notified at least two clients that it will not supply crude oil to their refineries next month due to damage sustained by the East-West pipeline, according to a Bloomberg report citing sources familiar with the matter.
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Where does Greece source its crude oil?
It is worth noting that Greek refineries have already diversified their supplier mix following the war in Iran, sourcing crude from countries such as Kazakhstan, Libya, Iraq, Norway, Egypt, the North Sea, and even shale oil from the United States.
Furthermore, Greece and the broader region face no risk of supply shortage, as strategic reserves of 90 days are maintained. Greek refineries are therefore considered unlikely targets for supply disruption.
European clients typically receive Saudi crude oil through long-term supply contracts, which guarantee a steady monthly flow — something that will not be the case next month. Bloomberg has also left open the possibility that additional refineries could be affected in the future.
Saudi Arabia: East-West pipeline shutdown
Saudi Arabia was forced to shut down the East-West pipeline last week following the drone attack. The pipeline is expected to resume partial operations within the coming days and return to full capacity within six weeks, according to a source with knowledge of the situation who spoke to Bloomberg.
European refineries typically receive Saudi crude via the Egyptian Mediterranean port of Sidi Kerir, which is connected to the Red Sea through a pipeline.
The pipeline shutdown triggered panic buying among some Aramco clients, with Polish energy company Orlen SA serving as a notable example — the firm has launched more than 10 tenders since Friday in an effort to secure alternative supplies.
