Saudi Aramco offers crude via Oman after pipeline attacks

Saudi Arabia is scrambling to reroute crude oil exports after drone attacks forced the shutdown of its East-West pipeline last week, canceling deliveries to European buyers and arranging ship-to-ship transfers off Oman to keep oil flowing to Asia amid the broader conflict with Iran.

Aramco Pivots to Oman Transfers

Saudi Aramco is offering its flagship Arab Light, Arab Medium, and Arab Heavy grades to long-term Asian buyers for loading off Oman's Sohar port, outside the Strait of Hormuz, according to Reuters Thomson Reuters Corporation ↘ 3.03%. The state oil company has doubled daily crude loadings at its Ras Tanura and Juaymah terminals inside the Persian Gulf to about two very large crude carriers per day — equivalent to roughly 4 million barrels — according to satellite tracking by Energy Aspects cited by Reuters.reuters+1

Saudi Arabia informed European customers that some September-loading crude cargoes would be cancelled, while oil loadings at the Red Sea port of Yanbu have been suspended. At least one Asian buyer said it received notice from Aramco that Yanbu shipments would be delayed and rescheduled, with no timeline given.trtworld+1

Pipeline Attack and Ongoing Threats

The crisis began on September 10–11, when drone strikes launched from Iraqi territory hit the 1,200-kilometer East-West pipeline in the Riyadh and Medina regions, causing fires, injuries, and structural damage. Saudi Arabia shut the pipeline as a precautionary measure the following Friday. The pipeline, with a capacity of 7 million barrels per day, had served as the kingdom's main alternative export route after the Strait of Hormuz was effectively shuttered earlier this year during the U.S.-Iran conflict.nytimes+2

Shipping tracker Kpler estimated the pipeline could return at only around 50% capacity after up to six weeks of repairs, potentially cutting Red Sea exports from Yanbu by 2.5 to 2.7 million barrels per day. Rabobank analyst Bas van Geffen noted that "the damage to the pipeline increases Iran's leverage" by forcing Saudi Arabia back toward Hormuz-dependent exports.fxstreet+1

Oil Markets Volatile, Diplomacy Stalled

Oil prices surged earlier this week, with WTI climbing above $105 on Tuesday as the pipeline remained shut and Libya's National Oil Corporation halted operations at three oilfields due to local protests. Prices retreated on Wednesday as the Oman rerouting eased some supply anxiety, with Brent crude falling to around $107.55 and WTI declining to about $104 in early European trading ahead of a Federal Reserve interest-rate decision.investing+1

Diplomatic efforts have stalled. A scheduled meeting between Gulf powers and Iran over Strait of Hormuz shipping was postponed, with Tehran suggesting the delay came at Saudi Arabia's request. President Donald Trump said Iran "wanted to make a deal," but Iranian officials rebuffed the notion. With Houthi militants continuing attacks across Saudi Arabia and no timeline for pipeline repairs, analysts at ING said oil prices "remain firmly supported" until markets gain clearer visibility on Saudi supply.investing