Saudi Aramco Bypasses Damaged Pipeline to Resume Oil Exports
Saudi Aramco's East-West crude oil pipeline was damaged in an attack in early September, but the company has managed to bypass some sections and get product moving again. According to Industrial Info Resources, Saudi Aramco built bypasses around the damaged areas, allowing for the continuation of oil exports from the Red Sea port city of Yanbu.
Despite this progress, maritime risks remain high due to ongoing tensions in the region. Corey Ranslem, CEO of Dryad Global, a maritime risk consultancy, stated that vessel traffic through the Bab al-Mandab Strait has decreased by 50%, with only about 30 vessels passing through daily compared to an average of 80.
The damage to the East-West pipeline, which has a peak capacity of 7 million barrels per day (bpd), was caused by drone attacks in early September. The incident led to a cut in operations at the Yanbu SAMREF Refinery by 50% from its design capacity of 400,000 bpd.
The price of Brent crude oil has risen above $100 per barrel due to global energy shortages and tensions in the region. The White House is considering steps to offset escalating commodity prices, including a potential ban on exports of some refined petroleum products.