Is a Saudi-Origin Crude Oil Crisis Looming? "A One-Month Pipeline Shutdown Could Disrupt 120 Million Barrels of Supply"

[Financial News] Saudi Arabia, the world's largest crude oil exporter, has halted operations at a key pipeline and is intensifying its fighting against Yemen's Houthis, raising concerns that the global crude oil market could suffer supply losses of catastrophic proportions.
According to an analysis by maritime intelligence firm Kpler cited by NYT on the 16th (local time), if Petroline, which was shut down after being hit recently, remains out of operation for a month, the supply shortfall is expected to reach about 120 million barrels. That is equivalent to about 4% of monthly global crude oil supply.
Earlier, Petroline was temporarily shut down on the 10th after being attacked by drones believed to have been launched from a stronghold of pro-Iranian forces in southern Iraq. The approximately 1,200-kilometer pipeline ran from Saudi Arabia's eastern oil fields across the Arabian Peninsula to Yanbu Port on the Red Sea coast. Crude oil departing Yanbu Port is exported to Asia via the Suez Canal or pipelines in Egypt. As a result, the pipeline had served as a key alternative route following a blockade of the Strait of Hormuz, but its own targeting has now disrupted exports.
Clashes between Saudi Arabia and the pro-Iranian Houthis are also fueling concerns. After seizing a strategic area near the Bab-el-Mandeb Strait last week, the Houthis further increased pressure by striking key Saudi energy infrastructure. Saudi Arabia has also launched missile attacks against the Houthis, heightening military tensions between the two sides.
Meanwhile, Amena Bakr, Kpler's head of Middle East and Organization of the Petroleum Exporting Countries (OPEC) analysis, said, "With a key maritime shipping route blocked, Iran is escalating its attacks and Iranian proxy forces are active, yet there are no signs whatsoever of diplomatic negotiations," adding, "From an energy security perspective, this is a catastrophic situation."
Goldman Sachs warned, "If military attacks in the Persian Gulf and Red Sea continue, international oil prices could rise to $120 per barrel."
[email protected] Hong Chae-wan Reporter