South Korea faces biggest crude hit

Saudi crude made up thirty four point one percent of South Korea's imports in July. Japan relied on it for twenty seven point three percent, China for fourteen point nine percent, and India for ten point two percent.

Pipeline closure cuts off major route

Saudi Arabia's East-West pipeline, which links to the Yanbu port on the Red Sea, had become the main export route for Saudi crude bound for Asia after the Strait of Hormuz faced constraints.

Four million barrels at risk daily

Analysts estimate between three point five million and four point five million barrels per day of Asia-bound crude are exposed to the pipeline shutdown, once stored supplies at Yanbu and Egypt run down.

Stored crude buys time, then runs out

Yanbu and Egypt hold enough stored crude to keep exports moving for roughly one to two weeks. After that, replacement cargoes from the Americas or West Africa take more than a month to reach Asia.

Prices and freight costs rise first

The immediate impact will be higher oil spot prices and freight costs rather than physical shortages. Asian refiners will feel cost pressures weeks before any actual supply squeeze hits.

“Asian refiners feel the cost immediately and the physical shortage weeks later.”

Refiners adapt with flexible sourcing

Asian refiners have improved their ability to process a broader range of crude grades, which should help them source alternative supplies and reduce the overall impact of the disruption.

Repairs could take weeks or months

Saudi Arabia has not said when the pipeline will reopen. Reports suggest repairs might take three to six weeks, though the U.S. Energy Secretary said operations would resume very soon.