May 29, 2020

Saudi Arabia shuts down pipeline to Bahrain after drone strikes – report

The drone raid, claimed by the Houthi rebels, affected mainly light crude grades resulting in the shutdown of the pipeline from which Bahrain’s Bapco receives oil from state oil giant Aramco, Reuters reported citing two trade sources. The pipeline carries 220,000-230,000 barrels per day (bpd) and transfers Arab Light crude.

Now the Bahraini company is looking for other ways to get about 2 million barrels of Saudi crude and may use vessels for transportation. It is unclear when the country will be able to bring in Saudi oil.

Also on Oil prices skyrocket 20% after attacks on Saudi plants disrupt global supply

Saudi Arabia, the world’s top world crude exporter, had to close two facilities at Abqaiq and Khurais after the weekend attack halved the kingdom’s daily oil output and reduced global production by 5 percent. The Abqaiq oil refinery is one of the most important facilities in the world for crude supply.

On Sunday, the US said that it is ready to deploy its emergency reserves to offset possible shortages. Analysts predict that if disruption to production lasts for too long, oil prices will spike.

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