Saudi Arabia Restarts East-West Oil Pipeline Amid Signs of Increased Exports

Saudi Arabia has restarted operations at its East-West oil pipeline, which was shut down by drone attacks on September 11. The pipeline was pumping at a low rate after its restart but is expected to reach full capacity in six to eight weeks.

The East-West pipeline carries around four million barrels per day (bpd) of crude oil, roughly 4% of global supply. It has been used as an alternative route for Saudi Arabian oil exports since the US-Israeli war on Iran disrupted flows through the Strait of Hormuz.

The resumption of supplies from the East-West pipeline helped drive down global oil prices, with Brent crude falling by over $2 a barrel to around $97. The price drop is attributed to increased expectations of Saudi Arabian exports and the possibility of Iran reopening the Strait of Hormuz within seven days.