Ras Tanura loadings spike after East-West pipeline disruption – Kpler

Crude oil loadings at Saudi Arabia's Ras Tanura and Juaymah ports have increased significantly following disruptions to the 1,200 km East-West Pipeline, according to market intelligence firm Kpler. Six Very Large Crude Carriers (VLCC) loaded about 12 million barrels at the two ports on September 21, the firm reported. This single-day loading highlights the rapid response of crude flows to challenges around Hormuz, Kpler noted.

Out of the six vessels, a few had already transported crude between ships and ports over the previous six weeks due to disabled Automatic Identification System (AIS) transmitters, Kpler added. This pattern suggests that the recent rerouting is part of a longer-running trend in changing vessel behavior amid the ongoing war in the Middle East, which has disrupted crude oil flows through the Strait of Hormuz and increased security risks and insurance costs, Kpler explained.

Saudi Arabia has restarted operations at its East-West oil pipeline, bringing back some flow through the 1,200 km route, Reuters reported. The pipeline is currently operating at a low capacity, with Aramco, Saudi Arabia's state-owned oil company, working to restore flows to full capacity. Currently, the pipeline is running at less than 40% of its capacity of 7 million barrels per day (b/d), Reuters added, citing sources.

Reaching this rate will take a few days, while a full restart will require 6-8 weeks, according to Reuters. Analysts from ING Bank note that the restored route could increase global crude supplies in the coming weeks. However, persistent headwinds remain, with Saudi pipeline flows remaining below normal levels and traffic through the Strait of Hormuz continuing to be constrained.