Saudi Aramco Halts October Crude Supply to European Term Customers

Saudi Aramco has notified European term customers that their crude oil allocations for October will be zero, according to an OilPrice.com report published on 18 September 2026. This decision affects all European term buyers, with at least two European refiners reportedly receiving zero allocation notices.

The development coincides with Saudi Arabia's efforts to reroute approximately 60 million barrels of crude through the Persian Gulf, a consequence of damage to its East-West pipeline. The damaged pipeline previously transported 4 million to 5 million barrels per day (bpd) across Saudi Arabia to Yanbu, offering European refiners access to Saudi crude via Egypt's SUMED system without transiting the Strait of Hormuz.

Pipeline Damage and Rerouted Exports

The East-West pipeline incident disrupted the established flow to Europe. In response, Aramco has arranged the sale of about 60 million barrels from its Persian Gulf export terminal at Ras Tanura for September and October loading. These barrels are slated to travel through the Strait of Hormuz and undergo ship-to-ship transfers near Sohar, Oman. This strategy aims to reintegrate an estimated 1 million to 1.5 million bpd of Saudi Gulf exports into the market.

However, these redirected exports are primarily destined for buyers in Asian markets, including China, South Korea, India, and Japan, rather than Europe. Crude destined for Europe from the Gulf would face a complex journey through the Strait of Hormuz and the Red Sea, areas that have reportedly experienced shipping attacks, or alternatively, an extended voyage of nearly five weeks around Africa.

Market Impact and European Response

The rerouting has implications for crude oil pricing. OilPrice.com reported Brent crude trading around $104.30 and WTI near $102 on Friday, below Brent's earlier peak above $108. Conversely, Dated Brent, a key benchmark for physical European crude, reportedly exceeded $130 this week.

Prior to this announcement, some European refiners had already begun seeking alternative supplies. Poland's Orlen, for example, had reportedly been purchasing North Sea barrels and exploring options for US and Kazakh crude, following delays and cancellations of Saudi September cargoes. While the US Energy Secretary Chris Wright stated that crude flow through the East-West pipeline was expected to resume within days, Aramco is reportedly targeting a return to approximately half capacity within days, with full capacity not anticipated for another six weeks.