Saudi Pipeline Outage Strips Oil Market's Last Buffers

Saudi Arabia's 1,200-kilometer East-West pipeline, which normally moves 4-5 million barrels daily around the largely closed Strait of Hormuz, remains offline after last week's attack, forcing Aramco to suspend Yanbu loadings and sending Brent back toward $108. U.S. Energy Secretary Chris Wright indicated repairs could be completed within days, though Saudi officials are still assessing full damage.

The outage lands at a critical moment: cushions built earlier in the year, including record IEA-coordinated stock releases and drawn-down oil-on-water inventories, have largely evaporated since Hormuz traffic was disrupted in March.

Compounding the squeeze, Libya's National Oil Corporation is threatening force majeure after security guards shut valves at the Hamada and Tahara fields, halting production entirely and raising fears of further supply loss spreading across North African output.