Saudi Arabia has informed European refiners that it will not supply crude oil shipments to the region next month following disruptions caused by the shutdown of the East-West pipeline, Bloomberg reported.
European customers typically receive Saudi crude under term contracts that provide regular monthly supplies. Before the pipeline shutdown, European countries were importing around 577,000 barrels of Saudi crude per day.
The supply disruption comes as Europe faces heightened pressure in energy markets. The suspension of Saudi shipments could further tighten crude availability for European refiners and increase competition for alternative supplies.
The development may also add pressure to global oil markets as refiners and traders assess the impact of reduced Saudi crude availability and adjust supply arrangements.
The latest disruption highlights the vulnerability of oil supply routes and the potential impact of infrastructure shutdowns on regional energy markets.
