Saudi Arabia just told European refiners: zero crude next month. No oil. None.
This isn't a reduction. It's a full stop. The East-West pipeline shutdown means term contracts—those "guaranteed" monthly flows—are worthless right now.
Europe was importing 577k barrels/day from the Saudis before this. That supply just vanished overnight.
Energy prices in Europe were already fragile. Now they're dealing with a total cutoff from one of their key suppliers. Refiners scrambling. Governments on edge.
This is what supply shocks look like in real time. No warning. No cushion. Just gone.
Energy markets don't care about your hedges when physical barrels disappear.
This isn't a reduction. It's a full stop. The East-West pipeline shutdown means term contracts—those "guaranteed" monthly flows—are worthless right now.
Europe was importing 577k barrels/day from the Saudis before this. That supply just vanished overnight.
Energy prices in Europe were already fragile. Now they're dealing with a total cutoff from one of their key suppliers. Refiners scrambling. Governments on edge.
This is what supply shocks look like in real time. No warning. No cushion. Just gone.
Energy markets don't care about your hedges when physical barrels disappear.