Saudi Arabia Resumes East-West Pipeline Operations After Drone Attacks
Saudi Arabia resumed operations at the strategic East-West oil pipeline following drone attacks, helping to ease global energy supply concerns and stabilize oil markets.
Saudi Arabia resumed operations at the East-West oil pipeline on Tuesday following a shutdown triggered by drone attacks on the kingdom's energy infrastructure. Three sources familiar with the matter told Reuters that exports from the Red Sea port of Yanbu could resume later in the day.
According to two sources, oil is currently being pumped through the pipeline at a low rate, and it remains unclear when it will return to full capacity. State-owned oil giant Saudi Aramco has not yet commented on the development.
Pipeline Role in Global Supply
The East-West pipeline, connecting major oil fields in eastern Saudi Arabia to Yanbu on the western coast, was shut down on September 13 following drone strikes. The attack forced Aramco to halt oil loading at the Red Sea port and cancel several shipments to European customers. The pipeline typically transports around five million barrels per day, with capacity reaching up to seven million barrels under certain conditions.
The shutdown was particularly significant given ongoing disruptions to shipping traffic in the Strait of Hormuz. Since the outbreak of conflict, the overland route to Yanbu has served as Saudi Arabia's primary alternative for exporting oil without passing through the strategic chokepoint. Estimates cited by Reuters indicated the shutdown threatened to remove up to four million barrels per day from the market, representing about 4% of global oil supplies.
Market Impact and Alternative Routes
To compensate for the loss of the western route, Aramco increased exports from its Gulf terminals in recent days. On Sunday alone, the company loaded approximately 14 million barrels onto seven supertankers near the port of Ras Tanura. According to vessel tracking data, the volume of Saudi oil passing through Hormuz rose to about 2.9 million barrels per day, compared to roughly 700,000 barrels per day in August.
The resumption of pipeline operations may allow Saudi Arabia to gradually shift a portion of its exports back to Yanbu, renew canceled shipments to European clients, and reduce the exposure of its oil exports to the security situation in Hormuz.
From an energy market perspective, this development could temper supply fears and place downward pressure on oil prices, which surged following the pipeline shutdown and the halt of loadings at Yanbu. However, the impact depends on the rate at which pumping increases and the actual resumption of tanker loadings.
