Houthi attack on Saudi pipeline leads to supply stoppages

The Houthi rebels hit a hugely important oil pipeline in Saudi Arabia with a drone, causing operations to stop. The repair work could take longer - now there are apparently initial effects on Saudi oil deliveries.

According to insiders, Saudi Arabia is canceling some crude oil deliveries to European customers planned for the end of September. The world's largest crude oil exporter is reacting to the closure of its east-west pipeline after an attack last week, three people familiar with the matter told Reuters. In addition, attacks by the Yemeni Houthi militia in the Red Sea and ongoing disruptions to shipping traffic in the Strait of Hormuz are putting a strain on business. State oil company Saudi Aramco declined to comment.

The loading of oil in the Saudi Red Sea port of Janbu is currently suspended, it said. The Iran-backed Houthis recently hit the important east-west pipeline that pumps crude oil to the Red Sea. The pipeline, which can bring large quantities of oil from the Persian Gulf to the Red Sea bypassing the effectively blocked Strait of Hormuz, was shut down as a precaution after attacks on the line in the Riyadh and Medina regions.

Janbu is Saudi Arabia's main oil port on the Red Sea and has become the main export route for Saudi oil, bypassing the Iranian-blocked Strait of Hormuz. As the Associated Press reports, repair work on the East-West pipeline could take three to five weeks. Some analysts even assumed longer downtimes, it said.

Oil prices continue to rise

Oil prices have recently continued to rise. The price for a barrel (159 liters) of North Sea Brent crude oil for delivery in November climbed 1.7 percent to $107.44 in the afternoon.

News from Libya caused additional uncertainty on the market. Accordingly, the Al-Tahar oil field was closed. The shutdown is due to the forced closure of the Hamada-Zawiya pipeline, state oil company National Oil announced on its Facebook page. Libya sells a large part of its crude oil to Europe.

The main driver of oil prices remains the Iran War. An opening of the Strait of Hormuz is still not in sight. The Houthi militia also controls the Bab al-Mandab Strait and blocks the passage of Saudi ships. Brent oil has become significantly more expensive since the start of the war. At the end of February, the price for a barrel of Brent oil was just $70.