Saudi Arabian Oil Co. (SASE:2222), d/b/a Saudi Aramco, informed at least two European oil refineries that there will be no crude allocations in October, Bloomberg News reported Friday, citing people familiar with the matter.
European buyers typically rely on term contracts to guarantee a predictable flow of monthly crude deliveries, and the Saudi oil producer's decision is applicable to all European buyers, the report said.
The supply halt follows the recent drone attack on Saudi Arabia's East-West pipeline, which is expected to resume partial operations soon, with a return to full capacity estimated in six weeks.
Saudi Aramco did not immediately respond to a request for comment from.
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