Saudi Arabia has resumed oil exports through a key pipeline following repairs

Saudi Arabia has resumed oil exports via the East-West pipeline following repairs carried out after drone attacks in early September, Bloomberg reports, citing a source familiar with the situation. Another source told the agency that export volumes via this pipeline have reached approximately 3.5 million barrels per day.

The resumption of the "East-West" route restores Saudi Arabia's access to an alternative route for oil shipments that bypasses the Strait of Hormuz, the agency notes. Against the backdrop of this news, prices for Brent and WTI crude slowed their rise—during trading on September 28, they briefly rose 4% to $108.8 and $96.5 per barrel, respectively, — but then fell back to $106 and $94.

Exports via the Saudi "East-West" oil pipeline have resumed, according to a source familiar with the situation who spoke to Bloomberg. Another source told the agency that exports via this pipeline have reached approximately 3.5 million barrels per day. The pipeline’s total capacity is about 7 million barrels per day, of which about 5 million were typically earmarked for export, Bloomberg explains.

The state-owned energy company Saudi Aramco and the Saudi Arabian Ministry of Energy did not respond to the agency's requests for comment.

Last week, according to Reuters sources, Saudi Aramco tested an oil pipeline and increased the pressure in the system.

The resumption of operations on the oil pipeline could ease the situation for oil buyers in need of supplies—some European customers had already received notices, following the closure of the “East-West” route—had already been notified that they would not receive oil under their long-term contracts next month, Bloomberg notes.

Traders will now be watching to see what portion of its exports Saudi Arabia will continue to route through the Strait of Hormuz once the East-West pipeline reaches full capacity. Earlier, a Bloomberg source estimated that it could take about six weeks for the pipeline to fully resume operations.

Amid the war in the Middle East and disruptions to shipping traffic through the Strait of Hormuz, an alternative route for oil shipments through Saudi Arabia—the East-West Pipeline — became an important source of energy exports from the kingdom to the global market. However, this route also remains fraught with risks, the agency notes: This month, the Yemeni Houthis intensified their attacks on energy infrastructure in southwestern Saudi Arabia, including the port of Yanbu—the terminus of the East-West oil pipeline.

This article was AI-translated and verified by a human editor