Saudi Arabia Shuts Down East-West Pipeline Amid Regional Tensions
Saudi Arabia's East-West crude oil pipeline has been shut down as a precautionary measure after it was targeted in multiple strikes, according to the kingdom's energy ministry. The pipeline, which has a capacity of seven million barrels per day, had been hit in the Riyadh and Madinah regions a day earlier.
The shutdown follows a sharp decline in Saudi crude production, with OPEC data showing output fell to 6.24 million barrels per day in August, the lowest reported level since 1990. Despite plans by Saudi Arabia and other OPEC+ members to increase production, tighter global crude supplies and regional tensions have pushed Brent crude above $100 per barrel for the first time in months.
The pipeline had become increasingly important to Saudi Arabia as Iran's closure of the strategic Strait of Hormuz has weighed in decisively on oil flows through the waterway. The Saudi national oil company Aramco's CEO Amin Nasser said last month that the pipeline had played a bigger role in mitigating the impact of Hormuz's closure than the release of emergency crude reserves.