Saudi Arabia has informed some European customers that late-September crude oil cargoes will be cancelled, according to three sources familiar with the matter.
The cancellations add to growing concerns over the movement of oil from the world’s largest crude exporter, as several key routes face serious disruption, according to Reuters.
Saudi Arabia closed its East-West oil pipeline after it was attacked last week, the sources said. The pipeline is an important route for transporting crude from the country’s eastern oil fields to ports on the Red Sea, allowing shipments to avoid the longer route around the Arabian Peninsula.
At the same time, Houthi attacks in the Red Sea and continuing disruptions in the Strait of Hormuz have placed further pressure on regional energy shipments. The developments have increased uncertainty for oil buyers and raised concerns about delays and supply interruptions.
The sources did not provide details about the volume of crude affected or the number of European customers who received cancellation notices. It was also unclear whether the cancellations would be temporary or whether further cargoes could be affected if the transport disruptions continue.
Saudi Aramco, the state-owned oil company, declined to comment on the reported cancellations.
The latest development comes as energy markets closely watch the region’s shipping routes, where attacks and security threats have made the delivery of crude increasingly difficult.
