Saudi Arabia restarts East-West oil pipeline after drone attack shutdown

Saudi Arabia has restarted its East-West Pipeline and could resume crude oil exports from the Red Sea port of Yanbu later on Tuesday, according to Reuters, citing three sources briefed on the matter. The development comes 12 days after drone strikes launched from Iraq forced the shutdown of the critical 1,200-kilometer conduit, which had been carrying roughly 4 to 5 million barrels of oil per day to the kingdom's western coast.rigzone+2

Signals to Refiners

Earlier on Tuesday, Bloomberg reported that Saudi Aramco had informally told at least three Asian refiners they would soon be able to pick up oil from Yanbu, though no specific timelines were given. Some of those refiners already have vessels waiting near the port after missing their scheduled loading dates during the shutdown. Saudi Aramco declined to comment on the reports.reuters+1

European buyers have borne the brunt of the disruption. Aramco told at least two European refiners last week that they would receive no oil under long-term agreements in October, a decision that applied to all of the continent's buyers.rigzone

Gulf Exports Filled the Gap

While the pipeline was offline, Aramco ramped up shipments from its eastern terminals. On Sunday, the company loaded approximately 14 million barrels of crude onto seven very large crude carriers at its Ras Tanura port inside the Persian Gulf, according to data from TankerTrackers.com reported by Reuters. JP Morgan analysts noted that Saudi oil moving through the Strait of Hormuz had averaged 2.9 million barrels per day in the preceding six days, up from just 700,000 bpd in August. The increased supply helped push the Brent benchmark below $100 a barrel on Monday for the first time since September 9.inkl+1

International Response

On the diplomatic front, French President Emmanuel Macron said Monday that France is prepared to help secure Saudi energy infrastructure around Yanbu and the East-West Pipeline under a "strictly defensive approach," according to AFP. Macron also said he and U.S. President Donald Trump had agreed to work together to protect freedom of navigation in the Strait of Hormuz and ease pressure on global energy markets.bssnews+1