Saudi Oil Pipeline Shut Down After Drone Attack
A crucial Saudi oil pipeline attacked by drones will be out of service for weeks as damage is repaired, according to regional officials. The East-West Pipeline, which carries 2.6 million to 4 million barrels per day since late August, was shut down after an attack on Thursday that Saudi Arabia blamed on Iranian-backed militias in Iraq.
The repair process could take three to five weeks, with partial functionality possible during repairs. This represents a significant disruption to global petroleum supplies and the effect on the ability of the world's biggest exporter to get its crude to market.
The Iran war has forced Saudi Arabia to shift exports away from the Persian Gulf due to Iranian attacks on shipping through the Strait of Hormuz. The East-West Pipeline now serves as a vital lifeline, moving oil production from Gulf ports to the port of Yanbu on the Red Sea for export by tanker.
The shutdown threatens to turn off the tap for an extended period, with Rystad Energy warning that a month-long closure would represent a 'large disruption' and require major reallocation of global crude flows.