At APPEC 2026, one theme reverberated across discussions involving crude oil, shipping, refining, AI and EVs: energy security is no longer a secondary consideration.
It is increasingly influencing how refiners are planning crude purchases, how they configure assets, how shipowners price risk and how governments prepare for a more fragmented trading environment.
Saudi Aramco has informed European refining customers that they will receive no crude oil next month after the kingdom's East-West pipeline was shut down following a drone attack last week. The cutoff applies to all European buyers who normally receive Saudi crude on fixed-term contracts.
The pipeline is expected to partially restart within days and fully recover within six weeks. European refiners typically receive Saudi crude via Egypt's Mediterranean port of Sidi Kerir, connected to the Red Sea through the affected pipeline. Poland's Orlen has already issued over ten emergency tenders to secure alternative supplies.
Source: Financial Post
CHART OF THE DAY: The massive decline in Russian refinery oil processing since early 2006 (🟢 line) as Ukraine stepped up its attacks (coinciding in time with the US-Iran war), which has halted Russian diesel exports. More from the @IEA here: iea.org/commentaries/r…
Europe's fuel security is quietly migrating to Lagos. Dangote's VP for oil and gas says the refinery's workforce will practically double as it scales from 700kbd to 1.4 million b/d by 2029, with basic engineering done & equipment already ordered.
Francisco Blanch of BofA Securities says Brent could climb as high as $150 a barrel if critical infrastructure, like Saudi Arabia’s East-West pipeline, “is hit on a more permanent basis.” Traders aren’t waiting to find out: Brent fell toward $108 after rising 4% over two sessions
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