Saudi Arabia Restarts East-West Oil Pipeline After September 10 Drone Strikes

RIYADH, Sept 28: Saudi Arabia has resumed oil exports through its East-West Pipeline after repairs were completed following drone strikes on September 10, Bloomberg reported Monday.

Saudi Aramco tested the pipeline last week ahead of the restart, and shipments destined for export have now resumed, according to the report.

The pipeline provides Saudi Arabia with an alternative route for exporting crude without relying entirely on shipments through the Strait of Hormuz. The Kingdom had increased use of the westward route during the conflict with Iran, while also raising oil exports through the Strait of Hormuz this month.

The resumption could provide additional supply flexibility for buyers amid continued risks to maritime shipping in the Arabian Gulf. Traders are expected to monitor how Saudi Arabia balances exports between the pipeline and the Strait of Hormuz as the pipeline returns to full capacity.

The East-West Pipeline has a capacity of about 7 million barrels per day. Around 2 million barrels per day normally go to refineries on Saudi Arabia’s west coast, leaving roughly 5 million barrels per day of potential capacity for exports.

Westward shipments became an important supply route during the conflict with Iran and helped limit pressure on global oil prices, according to the report.

Oil prices remained above $107 a barrel on Monday as the United States and Iran remained divided over an agreement aimed at ending the conflict in the Middle East.