Saudi Arabia Reopens East-West Pipeline Amid Crude Oil Price Volatility

Saudi Arabia has ended its nine-day shutdown of the East-West oil pipeline and is preparing to resume crude oil exports from the Red Sea port of Yanbu. The system is operating at reduced capacity, but Saudi Aramco plans to gradually raise pipeline flows to around 4 million barrels per day.

The restart of the East-West pipeline is strategically important for Saudi exports as it allows crude oil to move from eastern oil fields to the Red Sea coast, bypassing the Strait of Hormuz. Before the shutdown, around 4 million barrels per day were transported through the route, equivalent to roughly 4% of global oil supply.

The restart has immediately added pressure to crude oil prices, with Brent falling by more than $2 per barrel, reaching its lowest level since the beginning of September.