Saudi East-West Pipeline Raises Crude Transport to 5.8 Million Barrels

Saudi Arabia's East-West pipeline has significantly increased its crude oil transport, moving 5.8 million barrels as of Tuesday morning, according to Energy Minister Prince Abdulaziz bin Salman. This boost comes as Gulf producers adapt to disruptions in the Strait of Hormuz due to the Iran war. The pipeline, which runs from the eastern part of the country to Yanbu on the Red Sea, had previously been transporting around 4 million barrels per day.

In September, drone attacks forced a temporary shutdown of the pipeline, halting crude loadings at Yanbu. However, Aramco restarted the pipeline on September 22, initially at reduced rates, and operations have since resumed. Standard Chartered estimates that Saudi crude exports rebounded to roughly 6.9 million barrels per day in September, up from 2.45 million barrels per day in August, with the East-West pipeline and increased tanker movements through Hormuz contributing to this recovery.

Gulf crude and condensate exports, excluding Iran, reached about 16.5 million barrels per day in September, nearing pre-war levels. Only 60% of these barrels passed through Hormuz, compared to 83% before the war, as producers relied on bypass pipelines, alternative ports, and ship-to-ship transfers. Elevated freight rates, war-risk insurance, and stretched tanker utilization have complicated these operations.

The security of the Yanbu route remains a concern, as the Houthis have threatened Saudi-linked shipping in the Red Sea and claimed an attack on an Aramco facility in Riyadh over the weekend. Saudi officials denied this claim, and a Reuters source confirmed that East-West pipeline flows had not been interrupted.