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The Financial Ways
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Saudi Arabia Shifts Oil Sales to Gulf of Oman After Pipeline Sabotage

Drone strikes near the Iraqi border have crippled Saudi Arabia's East-West pipeline, forcing the Kingdom to pivot its export strategy. To maintain output, Aramco has dumped 20 million barrels into the spot market, shifting loading operations from the Persian Gulf to ship-to-ship transfers in the Gulf of Oman.

Saudi Arabia Shifts Oil Sales to Gulf of Oman After Pipeline Sabotage

The 750-mile pipeline, a critical artery for bypassing the Strait of Hormuz, went offline late last week following the targeted attacks. With this bypass route severed, the Kingdom has been compelled to reroute crude loadings that were previously destined for the Red Sea port of Yanbu. The resulting logjam has forced Saudi Aramco to cancel or delay select September shipments bound for European refiners.

Chinese state-held giants and independent refiners have emerged as the primary buyers for these redirected spot cargoes. Traders are coordinating these transfers outside the chokepoint, mirroring a strategy recently perfected by the UAE’s ADNOC. By conducting these operations in the Gulf of Oman, Saudi Arabia avoids the risks associated with Persian Gulf shipping traffic, though the disruption underscores the fragility of regional energy logistics.

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