Saudi Aramco Halts October Crude Allocations to European Refiners

Saudi Aramco has told at least two oil refining customers in Europe that they will be allocated no crude oil in October, Bloomberg reported, citing people informed of the decision. The move follows an attack on the kingdom's East-West pipeline, which carries crude to the Red Sea, and extends the supply disruption that strike had already caused. Replacement buying has begun while Saudi Arabia works to restore normal flows, with some volumes being rerouted through Oman. European refiners carry the most direct exposure, making this an input to euro-area energy costs, while crude-linked currencies — the Canadian dollar above all — are the clearest FX channel.