Saudi Oil Pipeline Expected to Resume Operations Within Days
A major oil pipeline in Saudi Arabia is expected to resume operations within days after being shut down due to a drone attack by Iran-backed militias. The pipeline, which was damaged in the attack and has been offline since earlier this month, will likely return to about half capacity soon, with full restoration possibly taking up to six weeks.
The closure of the 1,200km pipeline, operated by Saudi Aramco, has affected up to 4% of the global oil supply, leading to a surge in oil prices and global inflation. The attack, which caused significant damage to the pipeline's pumping station, was attributed to Iran-backed Houthi forces.
The ongoing conflict in the region has heightened tensions and led to increased oil prices, with Brent crude reaching over $109 per barrel. As the pipeline resumes operations, Saudi Arabia will need to rely on its stocks to maintain exports, but these stocks are limited and will run out if the pipeline remains offline for an extended period.
The situation remains fluid, with potential for further escalation in the region. The capture of the strategic island of Perim in the Bab al-Mandeb Strait by Houthi forces has also complicated Saudi Arabia's oil export routes, leading to increased tensions and higher oil prices.