Saudi East-West Pipeline Restart Eases Pressure on Global Oil Supplies

Saudi Arabia has restarted operations on its East-West oil pipeline after drone attacks forced it to shut down. The pipeline, also known as Petroline, was initially restarted at a low pumping rate and is expected to gradually increase flows. This development comes as a relief for global oil supplies, which were under pressure due to the shutdown.

The International Energy Agency (IEA) has identified Saudi Arabia's East-West system as one of the limited operational crude routes capable of bypassing the Strait of Hormuz. The agency estimates that Saudi Arabia and the UAE together have around 3.5 million to 5.5 million b/d of available alternative export capacity.

In a separate development, Saudi Aramco has increased crude oil loadings from its Gulf export terminals after the attack disrupted shipments through the East-West Pipeline. The company loaded about 14 million barrels onto seven very large crude carriers at Ras Tanura on September 20.