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Market Chatter: Asian Refiners Await Clarity on Saudi Yanbu Crude Cargoes After East-West Pipeline Shutdown

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Asian oil refiners are still awaiting clarity on the fate of crude cargoes scheduled to load at Saudi Arabia's Red Sea port of Yanbu, after the kingdom shut its East-West oil pipeline following drone attacks on Friday, Bloomberg reported, citing traders.

The news agency said at least four refiners have yet to receive official communication after seeking details on the status of operations.

At least four empty oil tankers appear to be idling off Yanbu where the East-West pipeline terminates, according to ship-tracking data. The vessels had been scheduled to load at the port last week or over the weekend.

The report also noted that the number of affected vessels might be higher, as ships often shut off their transponders due to heightened security concerns in the region.

Yanbu and the East-West pipeline have become more critical to Saudi Arabia, providing a back-up after the US-Iran war curbed oil exports through the Strait of Hormuz.

The kingdom has been shipping around 5 million barrels per day of oil from Yanbu, although flows fell to about half that level from late July after Iran-backed Houthi militants declared an embargo on Saudi ports and attacked vessels in the Red Sea.

Saudi Arabia's state-owned Saudi Aramco did not immediately respond to' request for a comment on this story.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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