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Market Chatter: Israel Proposes Oil Pipeline Linking Gulf to Europe

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Israel proposed a new oil transportation corridor connecting Gulf producers with European markets through its existing pipeline network, offering an alternative to the Strait of Hormuz and Red Sea shipping lanes, Reuters reported Tuesday, citing Energy Minister Eli Cohen.

Cohen said the concept calls for a roughly 700-kilometer pipeline from Saudi Arabia to Israel's Red Sea city of Eilat, where crude would move through the country's pipeline system to the Mediterranean port of Ashkelon, the report said.

He said the proposal would reduce exporters' exposure to regional maritime disruptions and provide Gulf producers with another route to European customers, according to the report.

(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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