Europe left without Saudi oil - what this means for Israel
Saudi Aramco has notified European buyers of the cancellation of crude oil deliveries in October following a strike on the East-West pipeline. For Israel, a direct shortage is not a threat, but the rise in global oil prices could impact the cost of fuel, transportation, and goods.
Saudi Aramco has notified European buyers of the cancellation of crude oil deliveries in October. The reason was a strike on the strategic East-West pipeline, which connects oil-producing regions in eastern Saudi Arabia to the port of Yanbu on the Red Sea. Three pumping stations were damaged, and the timeline for repairs is uncertain. The pipeline's importance has sharply increased during the war with Iran, as it allows bypassing the Strait of Hormuz. According to Bloomberg, at least two European refineries have received notifications from Aramco. According to the IEA, in June, OECD European countries received about 577,000 barrels per day from Saudi Arabia. Brent was trading at around $104–105 per barrel on September 18. For Israel, a direct shortage of Saudi oil is not a threat, but the rise in global prices could impact the cost of fuel, transportation, and goods. Israeli fuel prices are calculated by the state according to a set formula. An additional risk remains further damage to Middle Eastern energy infrastructure.