Saudi Oil Exports Resume Through East-West Pipeline After Repairs

Saudi Arabia has resumed oil exports through the East-West pipeline after testing and building pressure last week, according to people familiar with the matter. The resumption will provide relief to buyers who have been clamoring for supply, particularly those in Europe who were told they wouldn't be allocated any barrels next month under term contracts.

The pipeline's closure was caused by drones launched from Iraq on September 11, which led to a temporary halt of oil exports via this crucial route. Saudi authorities had stated that the pipeline would remain closed until further notice, but it appears that repairs were completed and testing was successful, allowing for resumption of exports.

The East-West pipeline has been an alternative export route for Saudi Arabia since the Iran war, and its restoration will bring back access to this route. This move comes as Saudi Arabia has increased shipments through the Strait of Hormuz this month, indicating a significant increase in oil production and exports.