Saudi Aramco Tells European Refiners No Crude Allocations Next Month After Pipeline Attack

By sterlingashworth // 2026-09-22

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Saudi Aramco has informed refining customers in Europe that they will receive no crude oil allocations next month, according to people informed of the decision. The move follows the shutdown of the kingdom's East-West pipeline after a drone attack, the report stated. The decision applies to all European buyers, the people said, speaking on condition of anonymity because the information is not public. European customers normally receive Saudi crude under term contracts that provide monthly supply, according to the people. Saudi Aramco did not immediately respond to a request for comment made outside normal working hours, the report stated.

East-West Pipeline Shutdown Followed Drone Attack

Saudi Arabia shut its East-West pipeline last week after it was attacked by drones, according to a person familiar with the matter. The 1,200-kilometer line carries crude from the Abqaiq oil field in eastern Saudi Arabia to the Red Sea port of Yanbu, allowing the kingdom to export oil while bypassing the Strait of Hormuz, the report stated [1]. The line is due to partially restart within days and be fully back up and running within six weeks, a person familiar with the matter said. U.S. Energy Secretary Chris Wright said on Sept. 15 that crude flow through the pipeline should resume in days, telling CNBC it would be back up and running "very soon" [2]. The pipeline halt prompted panic buying from some of Aramco's customers, people informed of the situation said. European refineries typically lift Saudi crude from Egypt's Mediterranean port of Sidi Kerir, which is connected to the Red Sea via a pipeline, according to the report.

Term Contract Deliveries Suspended for European Buyers

European customers generally receive Saudi Arabian crude on term contracts, which ensure a steady flow of supply every month, the people said. Those deliveries will not take place next month, according to the people, who asked not to be identified because the information is not public. The allocation decision applies to all European buyers, the people said. At least two oil refining customers in Europe were told of the decision, the people said. Reuters reported that Riyadh had informed European customers that some crude cargoes scheduled for loading later in September would be canceled, and that loadings at the Red Sea port of Yanbu had been suspended [3].

Refiners Seek Alternative Crude Supplies

Poland's Orlen SA issued more than ten tenders since Friday in a race to secure alternative supplies, according to the report. European countries in the OECD imported 577,000 barrels a day of crude from Saudi Arabia in June, the International Energy Agency said in its monthly Oil Market Report, according to the report. The supply interruption affects term contract flows that refiners rely on for monthly deliveries, people informed of the matter said. Saudi Arabia's crude shipments remain halved as Iran-backed Houthis begin to tighten their grip on the Red Sea, Piper Sandler global energy strategist Jan Stuart wrote in a note on Friday [4]. Saudi oil exports averaged approximately 5.6 million barrels per day in August, declining 4.2 percent from July and 12.3 percent year-on-year, according to data from the Joint Organizations Data Initiative cited in the report [5]. The kingdom's crude production fell to 8.9 million barrels per day during the month, the report stated.

Pipeline Restart Timeline and Market Outlook

The East-West pipeline is expected to partially restart within days and return to full operation within six weeks, a person familiar with the matter said. U.S. Energy Secretary Chris Wright offered the first relatively concrete timeline for restoring a route that had been moving 4 million to 5 million barrels per day around the largely closed Strait of Hormuz [6]. European refiners are waiting for clarity on future allocations while seeking cargoes from alternative suppliers, according to the people. Saudi Arabia has been offering additional crude cargoes via Oman as drone attacks damaged the kingdom's oil pipeline to the Red Sea, appearing to ease concerns about the scale of Middle East supply disruptions [7]. Brent crude futures fell $2.92, or 2.7 percent, to settle at $105.83 a barrel after the reports of additional crude via Oman, the report stated [7]. The IEA data showed the volume of Saudi crude imported by OECD Europe in June, providing context for the supply disruption.

Conclusion

The allocation halt represents a significant escalation in the energy crisis affecting Europe, which was already facing pressure from disrupted Russian supplies and refinery constraints. Saudi Aramco did not respond to a request for comment, the report stated. The pipeline damage has affected a route that Saudi Arabia has increasingly relied on to export crude oil via the Red Sea rather than through the Strait of Hormuz, where ships have been attacked by Iran and the U.S. during their conflict [8]. Analysts have estimated the pipeline could remain out of service for weeks [1]. The situation remains fluid, with European refiners seeking alternative supplies and awaiting clarity on future allocations from the kingdom.

References

The Epoch Times. "Saudi Oil Pipeline Should Be Back Online in Days, Energy Secretary Wright Says". September 16, 2026.
ZeroHedge. "Piper Sandler Sounds Alarm: Shrinking Oil Buffers To Collide With Winter Demand". September 11, 2026.
The Epoch Times. "Analysts Estimate Saudi Pipeline Outage May Last Weeks, as Houthi Attacks Escalate". September 15, 2026.
Middle East Eye. "Oil prices fall after Saudi Arabia offers more crude via Oman". September 16, 2026.
RT. "Saudi Arabia cancels oil shipments to Europe after pipeline attack – Reuters". September 15, 2026.
BBC. "Satellite image reveals major damage that shut crucial oil pipeline". September 15, 2026.
ZeroHedge. "US Energy Secretary: Saudi Pipeline Could Be Back In Service Within Days". September 16, 2026.
NaturalNews.com. "Saudi Oil Exports Hit Nine-Year Low, Report Says". September 8, 2026.

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