Aramco turns to European fuel markets after attacks disrupt Saudi refineries

Saudi Aramco has been actively bidding for thousands of tons of diesel and gasoline in the Mediterranean, turning to European fuel markets after weeks of escalating attacks on its energy infrastructure disrupted domestic refining and export operations, Bloomberg reported on Thursday.rigzone+1

The state oil giant has been placing bids for diesel cargoes in a pricing window operated by S&P Global's ↗ 0.41% Platts unit over several weeks, according to brokers monitoring the activity. Traders said Aramco has also been seeking gasoline supplies in Europe.rigzone

A Summer of Attacks

The procurement push comes against a backdrop of sustained assaults on Saudi energy facilities. Yemen's Houthi militants have repeatedly struck Aramco's 400,000-barrel-per-day Jazan refinery on the Red Sea coast since late July, when the first attacks ignited fires and disrupted operations. The Houthis hit the facility again in August and early September, leaving it largely offline. On Wednesday, the group claimed fresh missile and drone strikes on an Aramco facility in Yanbu, saying they caused "fires and widespread destruction".oilprice+5

The attacks on refineries have coincided with a broader threat to Saudi export capacity. On September 10, drone strikes originating from Iraqi territory hit the East-West Crude Oil Pipeline, a 1,200-kilometer conduit that carries crude from Saudi Arabia's eastern oil fields to Yanbu on the Red Sea. Saudi Arabia shut the pipeline as a precaution, and the Associated Press reported it would remain out of service "for weeks".morningstar+2

Deepening Supply Crisis

The pipeline's closure has compounded problems for Aramco's exports. No crude has departed Yanbu since September 11, according to Vortexa data cited by Argus. Aramco cancelled or delayed crude deliveries to at least three European refiners, with some cargoes pushed as far out as November. The pipeline had become the kingdom's primary export route after the Strait of Hormuz was severely curtailed by the wider conflict with Iran.greekcitytimes+2

The New York Times reported this week that the shutdown risks keeping 4 percent of the world's oil supply from reaching international markets. Brent crude has climbed above $100 a barrel amid the disruptions.nytimes+1

Aramco Stays Silent

Aramco declined to comment on its Mediterranean fuel-buying activity. The company's chief executive, Amin Nasser, said last month that earlier attacks caused temporary interruptions but had "no material operational or financial impact" on the company. That assessment now faces a sterner test as attacks accumulate and the kingdom's export alternatives narrow.oilprice+1