Saudi Arabia's state-owned oil giant Saudi Aramco has begun offering additional crude oil supplies to European buyers at discounted prices, following the restoration of operations at a major pipeline disrupted by a drone attack in September. According to Bloomberg, which reported the development on October 27, the company is offering additional spot cargoes to European refineries for delivery in late October and November, with some October shipments priced below official selling levels. The October cargoes are expected to be loaded either at the Sidi Kerir terminal on Egypt's Mediterranean coast or at the port of Yanbu on Saudi Arabia's Red Sea coast.
The additional supplies follow the resumption of operations along Saudi Arabia's East-West pipeline, which was disrupted by a drone attack on September 11. The interruption had forced Saudi Aramco to inform European customers that it would be unable to fulfil certain crude oil deliveries scheduled for October under long-term contracts. With the pipeline back in operation, the company has resumed efforts to increase exports and restore normal supply arrangements.
Saudi Aramco has also informed European buyers that it expects to fulfil their long-term contractual orders in full during November. According to vessel-tracking data cited by Bloomberg, Saudi Arabia typically exports between 700,000 and 800,000 barrels of crude oil per day to European markets. The restoration of Saudi supplies has already contributed to downward pressure on prices for certain crude oil grades in Europe, as additional cargoes become available to refiners.
The increase in exports coincides with a recovery in Saudi Arabia's domestic oil production. In September, the kingdom's daily crude output increased by approximately one-third, exceeding 8 million barrels per day. This followed a sharp decline in August, when production reportedly reached its lowest level in more than three decades.
Other major Middle Eastern oil producers are also restoring production and export capacity. According to the International Energy Agency, crude oil production in the United Arab Emirates has reached a record high, while Iraq's oil exports are approaching levels recorded before the war-related disruptions. The recovery in regional supplies is gradually easing some of the pressure on European refiners, which had been forced to seek alternative crude sources following interruptions to established supply routes.
Azerbaijan among alternative suppliers during disruption The earlier disruption to Saudi oil shipments had prompted several European energy companies to diversify their procurement arrangements. Polish refining company Orlen was among the firms seeking alternative supplies to compensate for the shortfall. The company previously announced that it had secured additional crude oil shipments from Azerbaijan, Kazakhstan, Norway and other suppliers to maintain its refining operations.
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