Saudi Oil Exports Shift Back to Hormuz as East-West Pipeline Reopens

Saudi Arabia's East-West Pipeline has resumed operations after drone attacks forced it to shut down on September 13. The pipeline, which is 1,200km long, was operating at a reduced rate during its shutdown. As a result of the disruption, crude loadings at Yanbu were halted.

Since the shutdown, Saudi Arabia increased oil exports through the Strait of Hormuz. Over the weekend, it loaded seven super tankers with a combined capacity of 14 million barrels of oil from its Gulf export terminals. This development suggests an export shift back toward Hormuz, according to Noureldeen Al Hammoury, chief market strategist at Equiti Group.

Brent crude settled around $100 on September 21 after the surge in Gulf loadings helped push it below this price for the first time in recent weeks. At 2:19pm UAE time on Tuesday, Brent was trading down 2.52 per cent at $97.81 a barrel. West Texas Intermediate slipped 3.11 per cent to $89.5 per barrel.