Saudi Crude Exports Surge on East-West Pipeline Restart
Saudi Arabia's crude oil exports reached a four-month high in July, increasing by about 3.3% from June to 4.125 million barrels per day.
This is according to data from the Joint Organizations Data Initiative (JODI), which also showed that Saudi crude oil production rose to 8.135 million bpd in July from June's 7.122 million bpd.
The East-West Pipeline, which was restarted after being shut down due to drone attacks, played a key role in boosting shipments. The pipeline has the capacity to pump seven million bpd, but is currently operating at around 40% of its capacity.
UBS analyst Giovanni Staunovo attributed the increase in Saudi crude and product exports to the slowing down of regional conflicts. However, he warned that exports could be weaker in August, particularly from Red Sea terminals, due to renewed tensions involving the Iran-backed Houthi rebels.