Saudi Arabia restarts East-West pipeline; Yanbu exports set to resume today

Sources familiar with the matter told Reuters that Saudi Arabia has restarted the East-West pipeline for crude oil transport, with oil exports via the Red Sea port of Yanbu expected to resume. The agency cited three informed sources stating that oil flows have resumed through the pipeline, while two sources indicated that pumping is currently being conducted at low rates. Saudi Aramco has not yet responded to a request for comment.

The resumption of operations on the pipeline and the return of exports from Yanbu mark a significant step toward restoring normal flows of Saudi crude to global markets. The pipeline serves as a strategic artery that transports oil from the Eastern Province to the Red Sea coast. The port of Yanbu is a key facility in Saudi Arabia’s energy sector, enabling oil exports to global markets via the Red Sea. This provides an alternative route for crude exports away from the Strait of Hormuz, enhancing the resilience of the Kingdom’s oil supply chains.

The pipeline’s maximum capacity is approximately 7 million barrels per day, following an increase in throughput capacity leveraging existing infrastructure, compared to its original nominal capacity of around 5 million barrels per day.

Shipping data showed that Saudi Aramco loaded 14 million barrels of oil onto seven tankers last Sunday from terminals near the Ras Tanura port. Bloomberg reported that Saudi oil loading operations observed from within the Persian Gulf surged on Sunday, providing the clearest indication yet that the Kingdom is redirecting its exports toward the Strait of Hormuz following the shutdown of the East-West pipeline.

Large oil tankers capable of carrying 14 million barrels of oil were observed at Saudi export facilities on the Gulf, marking the highest number since at least June last year.