Saudi oil inventories near depletion, days away from export halt
REPORT, Sept. 14 (YPA) – The repercussions of Sanaa forces targeting Saudi energy facilities and transit routes are no longer confined to on-the-ground damage. They have begun to directly impact Riyadh’s ability to maintain the flow of its crude exports, amid growing indicators of declining supplies and shrinking inventories.
In the latest sign of the impact’s scale, “Reuters” agency revealed that current inventories at the Yanbu port on the Red Sea are sufficient to sustain exports for only five to seven days if the East-West pipeline remains non-operational. The pipeline transports approximately four million barrels per day to the port.
The agency warned that a prolonged shutdown of the pipeline could threaten the loss of up to 4 percent of global oil supplies.
This development follows reports confirmed by Reuters days earlier that attacks linked to the Yemeni Armed Forces disrupted operations across several Saudi energy facilities—including installations in the southern region of the Kingdom—causing fires and temporary operational halts.
In another indication of how these strikes are reverberating through the oil market, Reuters cited the International Energy Agency (IEA) as stating that Saudi crude supplies fell by 2.3 million barrels per day in August compared to the previous month, dropping to around 6 million barrels per day—their lowest level in over three decades.
The IEA attributed this decline to attacks targeting, among other objectives, the Jizan refinery, shipping traffic near Yanbu, and vessels navigating the Bab al-Mandab strait. Consequently, Saudi crude loadings fell by 1.1 million barrels per day to reach 3.5 million barrels, while inventories also saw a decline.
Thus, pressures continue to compound on the Saudi oil sector—stretching from production facilities to transport routes and ultimately to inventories.
While energy facilities in the south face repeated attacks, crude transport routes to the Red Sea are encountering a Yemeni blockade. As a result, the fallout has reached export-designated stocks in Yanbu, which Reuters reports can cover exports for only a few days.
YPA