Saudi Aramco Cancels European Crude Cargoes as Key Pipeline Stays Shut

Saudi Aramco has alerted some European customers that scheduled September deliveries may be delayed or canceled after the kingdom’s East–West pipeline was taken out of service following an attack on September 10. The line, which can move about 7 million barrels per day from eastern oilfields to the Red Sea port of Yanbu and thus avoid the Strait of Hormuz, has been offline since the incident. Market sources cited by Argus reported that at least three European refiners saw late-September cargoes either scrapped or postponed to as late as November, and two more buyers expect short-notice supply notices for September. Data cited by Argus from oil-flow tracker Vortexa indicate no Saudi crude left Yanbu after September 11, deepening concerns about near-term shipments. One market source told Argus every Saudi cargo scheduled in the final ten days of September could be at risk and estimated Yanbu’s inventories might last roughly five days; Argus did not independently verify that inventory figure and Aramco declined to comment. Earlier reporting by Bloomberg in August had suggested Aramco would meet contractual volumes for at least three European refiners in September, a plan now under strain. As barrels from Yanbu can be routed via Egypt—arriving at Ain Sukhna and then moved across the 2.5-million-bpd SUMED pipeline to Sidi Kerir—trade flows through Egyptian terminals have become a focal point. Vortexa data referenced by Argus showed Saudi exports from Sidi Kerir averaged about 1.95 million bpd in the first half of September, while arrivals at Ain Sukhna averaged roughly 1.40 million bpd. European buyers are already reacting: Poland’s refinery group Orlen has sought alternative supplies, buying North Sea grades such as Grane, Johan Sverdrup and Johan Castberg in spot tenders and soliciting offers for U.S. WTI Midland and Kazakhstan’s CPC Blend, traders told Reuters. Orlen, which depends on Aramco for about 40% of the crude it processes across refineries in Poland, Lithuania and the Czech Republic, reported that its plants continue to receive feedstock despite disrupted fixtures. Nonetheless, at least four scheduled September tanker fixtures from Sidi Kerir to the Polish port of Gdansk have failed, underscoring how the East–West pipeline outage is translating into missing barrels for European term customers. The shutdown has thus removed one of Saudi Arabia’s principal outlets that bypass the congested Persian Gulf, forcing buyers and traders to reconfigure flows and cargo sourcing in the near term.