Key facts
- Saudi Arabia's East-West pipeline moved 5.8 million barrels of crude as of Tuesday morning.
- The pipeline carries crude across Saudi Arabia to Yanbu on the Red Sea.
- Drone attacks in September had previously shut the line and halted crude loadings.
- Aramco restarted the pipeline on September 22.
- Standard Chartered estimates Saudi crude exports recovered to about 6.9 million bpd in September from 2.45 million bpd in August.
- About 60% of Gulf crude and condensate exports crossed Hormuz in September, down from 83% before the war.
Saudi Arabia's East-West pipeline has transported 5.8 million barrels of crude as of Tuesday morning, according to Energy Minister Prince Abdulaziz bin Salman. The pipeline is crucial for moving oil across the kingdom to its Red Sea port of Yanbu, offering an alternative to the Strait of Hormuz, which has become more complicated due to regional tensions.
The pipeline was shut down in September by drone attacks, halting crude loadings at Yanbu. Aramco restarted operations on September 22, initially at reduced rates, and loadings have since resumed.
Standard Chartered estimates that Saudi crude exports rebounded to approximately 6.9 million barrels per day in September, a significant increase from 2.45 million bpd in August. This recovery was driven by a combination of flows through the East-West pipeline and increased tanker movements via the Strait of Hormuz.
Overall, Gulf crude and condensate exports, excluding Iran, reached about 16.5 million bpd in September, nearing pre-war levels. However, only 60% of these barrels transited through Hormuz, a decrease from 83% prior to the conflict. The remaining volumes utilized bypass pipelines, alternative ports, and ship-to-ship transfers, contributing to elevated freight rates and war-risk insurance premiums.
Despite the increased utilization of the Red Sea route, Yanbu faces its own security concerns. The Houthis have threatened Saudi-linked shipping in the Red Sea, and while Saudi officials disputed a recent claim of an attack on an Aramco facility in Riyadh, a Reuters source confirmed that East-West pipeline flows had not been interrupted.