Saudi Arabia Restarts East-West Pipeline After Drone Attacks
Saudi Arabia has restarted operations on its East-West Pipeline following drone attacks that forced a shutdown earlier in September, according to Reuters. The pipeline is currently operating at less than full capacity and may take up to six weeks to return to normal levels of output. Prior to the disruption, it was transporting around 4 million barrels per day with a total capacity of 7 million barrels daily. Three pumping stations were damaged during the attacks, which Saudi Arabia has attributed to an Iraqi militia group. The restart contributed to a drop in Brent crude prices by over $2 a barrel toward $97, its lowest level since early September. The pipeline had become essential for moving oil away from the Strait of Hormuz amid ongoing tensions with Iran. With both export routes disrupted, Saudi Arabia arranged ship-to-ship transfers off Oman's Sohar port to maintain supply to Asian refiners while European buyers sought alternatives. The resumption of operations comes as Iran indicated it could restore access through the Strait of Hormuz within seven days and after additional tankers were dispatched from Ras Tanura. Traders are preparing for renewed crude exports via Yanbu, with shipments expected to head toward China.
Topics: Brent crude prices drone attacks oil pipeline Saudi Aramco