East-West Pipeline Restarts Oil Exports After Drone Strike Repairs

Saudi Arabia's East-West oil pipeline, damaged in drone strikes earlier this month, has started exporting oil after repairs. The pipeline, which has a capacity of 7 million barrels per day, was being tested and pressure built last week to resume flows by the weekend.

The resumption of exports will bring relief to buyers who have been clamoring for supply, with some customers in Europe told they won't be allocated any barrels next month under term contracts. Saudi Arabia has used the Hormuz route to push up its overall oil exports to a war-time high of over 5 million barrels a day in September.

The East-West pipeline typically sends about 2 million barrels per day to refineries along the kingdom's west coast, with the remainder available for exports. Overseas shipments had become a lifeline for the market during the Iran war, helping keep oil-price surges in check.