Saudi Arabia’s East-West pipeline has been shut down since September 11 following a drone attack attributed to Iran-backed militias operating from Iraq. State oil company Saudi Aramco has cancelled all crude oil allocations to Europe for September and October, representing a de facto force majeure on deliveries. Crude oil prices have risen to around $109 per barrel, while chartering costs for vessels transporting oil from the Persian Gulf to China have exceeded the symbolic one-million-dollar-per-day threshold for the first time. The pipeline’s restart, which accounts for 4 to 5 percent of global supply, remains uncertain, with some specialists estimating repairs could take five to six weeks minimum.
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