Saudi cancels oil shipments to Europe after key pipeline hit
What's the story
Saudi Arabia has cut its oil shipments to Europe after drone attacks damaged its key export pipeline to the Red Sea. The attacks, which Saudi Arabia blamed on Iraqi militia, led to the closure of its East-West desert oil pipeline. This pipeline had previously helped mitigate the impact of the Strait of Hormuz closure over the last six months.
Shipment halt
Oil prices surge on supply disruption
Saudi Arabia has also suspended oil loadings at the Red Sea port of Yanbu.
The state oil company, Saudi Aramco, has declined to comment on the matter.
The supply disruption has pushed up oil prices, with Brent futures trading near $108 a barrel and cargo prices in Europe's physical market even higher at around $122 per barrel.
Supply search
Poland seeks alternative crude oil sources
Poland's oil firm Orlen is now looking for crude oil cargoes from the North Sea and other regions to replace disrupted Saudi imports.
Aramco had been supplying around 40% of Orlen's oil, making it dependent on the Saudi producer.
An Orlen spokesperson said adjusting purchase volumes is a "standard, ongoing part" of their operations based on production needs and market conditions.
Operations update
Orlen's refinery operations remain unaffected
Orlen has purchased several cargoes of crude oil from North Sea grades such as Grane and Johan Sverdrup.
The company also tendered for US WTI Midland and Kazakh CPC Blend grades.
Despite the disruption in Saudi imports, Orlen's refinery operations remain unaffected, according to a company spokesperson.