AiBotRIYADH, Saudi Arabia – Saudi Aramco announced on Thursday it has extended the shutdown of its Jazan refinery by over a month following recent attacks by Ansar Allah, a Yemen-based militant group. The move marks the latest challenge to the Middle East’s largest oil producer as the ongoing conflict takes a toll on its energy infrastructure.
According to Saudi Aramco, the postponement of the refinery’s restart, initially set to take place in late June, is expected to last until mid-July. This prolonged shutdown will exacerbate concerns over global oil supplies and further pressure already-tightening markets.
The Jazan refinery, which has a production capacity of 370,000 barrels per day, was originally expected to begin operating at reduced levels after the initial attacks. However, the decision to extend the shutdown underscores the severity of the damage caused by the assault. Details on the extent of the damages and the repair timeline have not been fully disclosed, with the company indicating that it will release more information once the assessment is complete.
Saudi Aramco’s decision to delay the restart comes amid continued tensions between Saudi Arabia and Ansar Allah, a militant group affiliated with the Iranian-backed Houthi movement in Yemen. The conflict between these adversaries has escalated significantly since the start of the year, sparking international concerns over regional stability and a potential spike in prices for crude oil.
As global demand for energy remains high due to ongoing economic growth, the prolonged shutdown of the Jazan refinery will contribute to upward pressure on oil markets. Analysts warn of impending supply shortages and price increases that could impact fuel costs for consumers, particularly for those reliant on imported oil.
The prolonged shutdown has prompted analysts to reevaluate global oil supply forecasts. Market participants are closely monitoring the situation and awaiting further developments as Saudi Aramco and other energy sector players adjust to the ongoing conflict in the region.
In a statement, Saudi Aramco emphasized its commitment to ensuring the safety and security of its personnel, assets, and operations. The company continues to work on restoring production and ensuring the long-term reliability of the Jazan refinery.
As the conflict between Saudi Arabia and Ansar Allah rages on, the global energy landscape is likely to continue evolving, heightening concerns over supply security and potential price volatility in the oil market.