Saudi Arabia’s East-West Oil Pipeline Operating Normally After Reported Attack

RIYADH, Oct 5 : Saudi Arabia’s East-West oil pipeline is operating normally and oil continues to flow through the key export route, Bloomberg reported Monday, contradicting earlier reports that a fresh attack had halted operations.

People familiar with the matter told Bloomberg that crude continues to move through the pipeline. Earlier, other media outlets reported that an attack on a pumping station in Khurais, east of Riyadh, had caused extensive damage and disrupted flows. Those reports cited an unnamed source working in Saudi Arabia’s energy sector.

Saudi Aramco and Saudi Arabia’s Energy Ministry had not immediately responded to Bloomberg’s requests for comment, according to the report.

Oil prices initially rose as much as 1.2% following the reports of an attack, but pared their gains after Bloomberg reported that the pipeline remained operational.

The East-West pipeline, also known as the Petroline, is strategically important to Saudi Arabia because it allows the kingdom to transport crude from its oil-producing areas in the east to the Red Sea coast, providing an alternative export route that bypasses the Strait of Hormuz.

According to Bloomberg, Saudi Aramco had increased flows through the pipeline to more than 80% of its approximately 7 million barrels-per-day capacity by late last week. After supplying refineries on Saudi Arabia’s western coast, around 4.5 million barrels per day remained available for export, the report said.

The latest reports come after Saudi Arabia’s Energy Ministry previously confirmed that attacks on September 10 had targeted the pipeline in the Riyadh and Medina regions. The attacks prompted a precautionary shutdown of the facility.

The conflicting reports over the latest incident underscore the sensitivity of Saudi Arabia’s alternative oil-export routes amid heightened regional security concerns. For now, Bloomberg’s report indicates that crude flows through the East-West pipeline have continued despite the reported attack.