Saudi Arabia restarts East-West oil pipeline, exports from the Red Sea expected to resume; Brent falls

Saudi Arabia’s East-West oil pipeline has resumed operations, while oil exports from the port of Yanbu on the Red Sea could restart soon, Reuters reported.

The reopening comes after the pipeline was shut down on September 13, when drone attacks forced Saudi authorities to suspend crude oil loading. In recent months, Saudi Arabia has focused on finding alternatives to bypass the Strait of Hormuz, one of the world’s most important oil shipping corridors.

According to Reuters, the pipeline can transport up to around 4 million barrels of oil per day, a figure representing approximately 4% of global supply. Operations are expected to be limited initially, while Saudi Aramco aims to gradually increase capacity to around 4 million barrels per day.

Potential supplies from Yanbu immediately affected markets. The price of Brent crude fell by more than $2 per barrel, dropping below $100, the lowest level recorded so far since September 8.

An initial oil shipment is expected to leave Yanbu later in the day, bound for China, directly reflecting expectations that Saudi exports from the port will resume.