Saudi Arabia is offering additional Arab Light, Arab Medium, and Arab Heavy crude supplies to Asian refiners through ship-to-ship transfers off Sohar, Oman. This move follows recent pipeline attacks that disrupted standard loading operations.

The supply arrangement aims to mitigate logistical constraints caused by the infrastructure damage. By utilising offshore transfer points near Oman, the kingdom seeks to maintain export flows to key Asian markets despite the disruption.

Reuters reported earlier on the development, citing sources familiar with the matter. The specific volumes or pricing details for these additional cargoes were not disclosed in the initial report.

Saudi Arabia has cancelled September-loading crude cargoes for European refiners after strikes damaged its East-West pipeline. The disruption threatens to reduce exports from the western port of Yanbu significantly.

The Saudi energy ministry confirmed the shutdown following attacks in Riyadh and Medina on Thursday. While authorities are rerouting shipments via the Strait of Hormuz, logistical constraints have forced immediate contract cancellations.

Repair Timelines and Capacity Risks

US Energy Secretary Chris Wright described the closure as a "brief and temporary interruption" expected to last only a few days during a CNBC interview on Tuesday. However, industry experts project a much longer recovery period.

Andy Lipow, president of Lipow Oil Associates, stated that satellite images showing significant damage to a pumping station suggest repairs will take months. Maritime analyst Kpler expects the pipeline to operate at only about 50% of normal capacity for up to six weeks.

Kpler noted that offsetting the loss would require roughly 25 additional VLCC shuttle tankers per month to route oil through Ras Tanura. This shift increases exposure to the Strait of Hormuz.

Market Impact and Pricing

The supply disruption is altering global crude flows. Low inventories at Yanbu and stronger Dubai pricing are pushing more Atlantic barrels toward Asia. Europe remains tight as Forties crude shifts east.

At the time of writing, Brent crude futures expiring in November traded 0.59% lower at $108.10 per barrel. WTI crude futures expiring in October fell 0.88% to $104.89 per barrel.

What the Numbers Show

The divergence between official statements and market estimates highlights uncertainty over the outage duration. While US officials predict a resolution in days, Kpler’s six-week timeline implies a sustained supply deficit of up to 2.7 million bpd from Yanbu. This forces Saudi Arabia to rely heavily on the Strait of Hormuz, potentially keeping Dubai oil differentials elevated even if initial price spikes fade.