Saudi Arabia Targets Pipeline Restart Amid Ongoing Threats

Saudi Arabia is working to restart a critical oil pipeline that was damaged by drones in early September, aiming for a partial resumption of flows by September 26 and a full return by mid-October. The East-West pipeline has the capacity to transport 7 million barrels a day of oil, with about 2 million going to refineries along the kingdom's west coast. The pipeline was shut down after being hit by drones launched from Iraq on September 10, forcing Saudi Aramco to bypass a damaged pumping station and seek alternative routes for its exports.

The shutdown has had significant ripple effects on global markets, with crude prices extending declines below $100 a barrel on September 22. However, a resumption of the East-West pipeline will allow Saudi Aramco to pick up exports from the port of Yanbu again, which it has been using as a temporary measure while the Strait of Hormuz is heavily disrupted.

Risks remain on the route, however, as Yemen-based Houthi militants have continued their campaign by striking Saudi infrastructure. The pipeline and major Saudi oil fields were also targeted in 2019 as tensions flared with Iran and the Houthis.