Saudi East-West Pipeline Reopens After Drone Strikes

Saudi Arabia has resumed oil exports through its East-West Pipeline after repairs were completed following drone strikes on September 10, according to Bloomberg. The pipeline provides an alternative route for exporting crude without relying entirely on shipments through the Strait of Hormuz.

The Kingdom had increased use of the westward route during the conflict with Iran and raised oil exports through the Strait of Hormuz this month. Traders are expected to monitor how Saudi Arabia balances exports between the pipeline and the Strait of Hormuz as the pipeline returns to full capacity.

The East-West Pipeline has a capacity of about 7 million barrels per day, with around 5 million barrels per day available for exports after 2 million barrels per day go to refineries on Saudi Arabia's west coast. Oil prices remained above $107 a barrel on Monday as the United States and Iran remained divided over an agreement aimed at ending the conflict in the Middle East.