Saudi East-West oil pipeline is said to be flowing as normal

Saudi Arabia's crucial cross-country oil pipeline has resumed normal operations after a period of suspension following a recent attack, according to sources familiar with the matter. The East-West pipeline, which transports oil from Saudi Arabia to other regions, was halted after a fresh strike on a pumping station along the route over the weekend, as reported by AFP on Monday (Oct 5).

Oil prices initially surged by up to 1.2 per cent following the AFP report, but later stabilized as news of the pipeline's return to normal operations spread. Saudi Aramco, the state-owned oil company, had increased supplies through the pipeline to over 80 per cent of its seven million barrel-a-day capacity by late last week. This included ramping up deliveries after the pipeline was attacked by drones launched from Iraq in September.

The pipeline plays a vital role in maintaining oil flow during the ongoing conflict in Iran, allowing shipments to continue through the Red Sea without the risks associated with traveling through the Strait of Hormuz. At the end of last week, Aramco had about 4.5 million barrels a day of oil flowing through the pipeline for exports, excluding supplies to refineries on Saudi Arabia's west coast.

However, the Red Sea route has faced increasing pressure in recent months due to attacks from Yemen's Houthi militants on tankers and Saudi infrastructure along the kingdom's west coast. The conflict in Yemen has intensified recently, with the internationally-recognized government initiating a full-scale military campaign to reclaim Houthi-controlled areas following weeks of escalating tensions between the militant group and Saudi Arabia.