Saudi Arabia has resumed its East-West pipeline operations, and oil exports from the country's Yanbu port are expected to restart on Tuesday. This action comes after the pipeline's activities were halted due to drone attacks on September 13, which led to the suspension of crude oil loading at the Yanbu port.
Impact on Global Oil Market
The return to activity of the East-West pipeline has been identified as a significant factor affecting the global oil market. Traders have reported that this event has caused Brent oil prices to drop by more than $2 per barrel, marking the lowest price level since September 8. Given the recent disruptions in oil flow from the Strait of Hormuz following the U.S. and Israel's war against Iran, Saudi Arabia has temporarily utilized this pipeline to transport about 4 million barrels of oil per day, equivalent to 4% of global supply.
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More Details on the Pipeline and Future Plans
According to information from reliable sources, the pipeline is currently pumping oil at a low rate after resuming operations. One source has stated that the Saudi state oil company, Aramco, is working to restore the pumping rate to 4 million barrels per day, while a security source has noted that a full return to normal operations may take weeks.
This pipeline will help supply crude oil to Aramco's refineries located along the Red Sea coast, and one source has indicated that an oil shipment is set to be loaded at the Yanbu port on Tuesday, destined for China. Additionally, two other sources in the oil trading market have stated that traders are preparing to load Saudi oil by transferring tankers to the Sidra Carrier port and the Mediterranean port of Port Said in Egypt.
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