Saudi Arabia Pivots to Spot Oil Sales After Key Pipeline Goes Offline
So far this week, Saudi Arabia has sold as many as 20 million barrels of crude oil in the spot market to be picked up from just outside the Strait of Hormuz, after the Kingdom was forced to shut down the key onshore pipeline that helps it bypass the chokepoint, unnamed traders with knowledge of the
Source: OilPrice.com
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DW NOTE
Saudi Arabia is selling oil on the spot market because its East-West pipeline — the route that bypasses Hormuz — has gone offline. The kingdom designed that pipeline precisely for this scenario. If even the workaround infrastructure is failing, physical supply tightness is worse than the 6% global decline the IEA is already projecting.