Saudi Arabia resumes East-West Pipeline operations: Report
RIYADH — Saudi Arabia has begun restarting its East-West Pipeline, restoring a key route that allows the Kingdom to transport crude oil to the Red Sea for export without passing through the Strait of Hormuz, according to reports by Reuters and Bloomberg.Three sources told Reuters that operations on the pipeline had resumed, while two said crude was currently flowing at reduced rates. Loading…
Saudi Arabia has recommenced operations on its East-West Pipeline, enabling the country to transport crude oil to the Red Sea for export without utilizing the Strait of Hormuz, according to Reuters and Bloomberg reports. Three sources confirmed the pipeline's resumption, while two indicated oil was flowing at reduced rates. Loading operations at the Red Sea port of Yanbu may restart on Tuesday, the reports stated.
Bloomberg cited sources familiar with the matter, noting Saudi Arabia had entered the early stages of pipeline restart and aimed for export resumption later in the week. Oil traders have already observed tankers arriving at Yanbu, where the oil can be loaded for export from Saudi Arabia's Red Sea coast. The pipeline's shutdown occurred after drone attacks on September 13.
Saudi Aramco had been working to bypass a damaged pumping station, restoring some flow before reaching full capacity, Bloomberg reported. The East-West Pipeline is crucial to Saudi Arabia's oil-export infrastructure as it provides an alternative route for crude shipments, circumventing the Strait of Hormuz. Oil prices experienced a decline on Tuesday following the pipeline restart news and the likelihood of the Strait of Hormuz reopening.
Brent crude fell 2.8% to $97.55 per barrel, while West Texas Intermediate dropped 3.1% to $89.30 per barrel in spot trading.
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