Saudi Arabia has restarted its East–West oil pipeline at a reduced rate after a drone attack disrupted the route, Reuters reported on September 22, citing three people briefed on the matter. The line carries crude across the kingdom to the Red Sea port of Yanbu, giving exporters a route that avoids the Strait of Hormuz. New loadings at Yanbu had yet to be confirmed.
The pipeline's shutdown in mid-September interrupted shipments through Yanbu at a time when the war involving Iran had already constrained traffic through Hormuz. The route is especially important because Saudi Arabia has used it to move oil away from its Gulf coast and reach customers through the Red Sea. The latest restart therefore matters to refiners and traders monitoring available supplies.
Two of Reuters' sources said oil was moving through the line at a low rate. They said exports from Yanbu could resume later on Tuesday, but did not establish that tankers had begun loading. Saudi Aramco did not immediately respond to Reuters' request for comment, leaving the precise operating rate and timetable without public company confirmation.
Bloomberg separately reported that Saudi Arabia was in the initial stages of bringing the pipeline back and was aiming to restore Yanbu exports later in the week, according to people familiar with the plans. Its account said Aramco had been working around a damaged pumping station. The different forecasts underscore that restarting a pipeline and restoring normal export volumes are separate steps.
Oil prices fell on Tuesday as traders weighed the prospect of additional Saudi shipments alongside possible changes to flows through Hormuz. The Associated Press reported that Brent crude briefly dipped below $98 a barrel, although it later recovered some of that decline. A partial pipeline restart could ease pressure on supply, but its effect depends on how much oil can move and when tankers can load.
The next test is whether Yanbu loadings resume and whether throughput rises beyond the initial low rate. Until operators or shipping data confirm sustained exports, the restart signals an improvement in Saudi Arabia's export options rather than a return to full capacity. Markets will continue to watch both the pipeline and shipping conditions in the Gulf and Red Sea.
Comments