Saudi Arabia Restarts East-West Pipeline After Yanbu Export Disruption
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Saudi Arabia has restarted its East-West oil pipeline after drone attacks forced the route offline, paving the way for crude exports from the Red Sea port of Yanbu to resume and easing pressure on global oil supplies.
The pipeline had been shut since September 13 following the attacks, which also halted crude loadings from Yanbu, a key Saudi export outlet that allows oil shipments to reach global markets without passing through the Persian Gulf and the Strait of Hormuz.
Three sources briefed on the matter told Reuters that the pipeline resumed operations on Tuesday at a low pumping rate, with Saudi Aramco working to gradually restore flows to around 4 million barrels per day.
That level of crude flow is equivalent to roughly 4% of global oil supply, highlighting the strategic importance of the East-West route when shipping through the Strait of Hormuz faces disruption.
The restart is also expected to restore crude supplies to Aramco's Red Sea refineries. Sources said a cargo was expected to load at Yanbu for delivery to China, while traders were repositioning tankers toward Port Said and Sidi Kerir in Egypt in preparation for renewed Saudi shipments.
Oil markets reacted to the improved Gulf supply outlook, with Brent crude falling by more than $2 to about $98.23 a barrel during Tuesday's trading. The Saudi pipeline restart came alongside signals from Iran that it could reopen the Strait of Hormuz if U.S. military pressure and restrictions were eased.
