Saudi Oil Catches Between Scylla and Charybdis

Saudi Arabia's oil exports are facing a crisis on multiple fronts as tensions escalate in the region. The recent drone attack on the East-West pipeline has caused significant damage, with at least two pumping stations and parts of the pipeline itself affected.

The attacks, which were launched from Iraq, have given Iran some level of deniability, but experts believe that the Houthi rebels are also involved in the threat to Saudi oil exports. The East-West pipeline is a vital outlet for the kingdom, carrying 5 million barrels per day (bpd) of crude oil and 2 million bpd of natural gas liquids.

Repairs to the pipeline are estimated to take several weeks, with Saudi Aramco likely to route around the damaged stations at lower flow rates. However, repeated attacks could eventually exhaust spare parts and the capacity for rapid repairs.