Bad news for the oil market: the ongoing conflict in the Middle East continues to disrupt Saudi Arabia's production capacity and pipeline oil transportation volume.

According to media reports on Thursday citing an official from the Saudi Ministry of Energy, the recent attacks on Saudi energy facilities have led to a reduction of about 600,000 barrels per day in the country's oil production capacity, with a daily decrease of about 700,000 barrels in the capacity of the east-west oil pipeline in Saudi Arabia. The source from the Saudi Ministry of Energy did not specify who carried out the attacks, but Saudi Arabia has intercepted many missiles and drones from Iran in recent weeks. The attacks have disrupted the operation of oil, natural gas, refining, petrochemical, and power facilities in Riyadh, the eastern province, and the industrial city of Yanbu, according to reports. Since the end of February, when the US and Israel took military action against Iran, Saudi Arabia has not disclosed the specific impact of the attacks on oil field production, refineries, and pipeline transportation. Matt Smith, an analyst from the commodity analysis firm Kpler, said, "The east-west pipeline handles a significant amount of crude oil transportation for which Saudi Arabia cannot rely on the Strait of Hormuz. If the volume of transportation decreases, it will further exacerbate the tight supply situation, which is not good news for the market." The recently announced two-week ceasefire agreement between the US and Iran appears extremely fragile, as Israel continues to launch attacks on Lebanon, with little indication that Iran is lifting its almost complete blockade of the Strait of Hormuz, through which nearly one-fifth of global energy shipments pass. The east-west oil pipeline in Saudi Arabia spans the Arabian Peninsula, connecting the country's large eastern oil fields directly to the western industrial port city of Yanbu. The construction of this pipeline dates back to the 1980s during the Iran-Iraq War, when there were incidents of ships being attacked in the Strait of Hormuz, but it was far less severe than the current conflict's "near-complete closure." In the event of the strait being blocked, the east-west oil pipeline becomes Saudi Arabia's only crude oil export route. Continued attacks on energy facilities Reports on Wednesday indicated that just hours after the US and Iran reached a ceasefire agreement, the key east-west pipeline that transports oil to the Red Sea in Saudi Arabia was attacked. According to reports, at around 1 pm local time on Wednesday, a pump station on this 1,200-kilometer pipeline was attacked by drones. Additionally, according to sources, the Saudi Manifa oil field was also attacked, resulting in a reduction of about 300,000 barrels per day in production capacity, after the earlier attack on the Khurais oil field also reduced production capacity by 300,000 barrels per day, bringing the total reduction in Saudi Arabia's capacity to about 600,000 barrels per day. The attacks also affected several major refineries such as Saudi Aramco's Jubail Refinery and Petrochemical Company (SATORP), directly impacting Saudi Arabia's exports of finished products to the global market. The attacks on key oil fields, oil pipelines, and refineries highlight the risks faced by global energy supply as conflicts spread in the region. As the world's largest oil exporter, Saudi Arabia plays a central role in the global oil market, and any disruption to its production, refining, or export channels could tighten supply and exacerbate price fluctuations. The source from the Saudi Ministry of Energy warned that continued attacks will lead to a reduction in crude oil supply, slow down the recovery process, impact energy security in consumer countries, and exacerbate volatility in the oil market. This article is reprinted from "Financial Union", edited by GMTEight: Feng Qiuyi.