Saudi Pipeline Attack Slows Oil Exports Amid Global Market Tightening
A Saudi pipeline attack has raised concerns about the availability of oil cargoes in the global market. According to officials familiar with the damage assessment, it will take 3-5 weeks for pipeline flow to be fully restored.
The East-West Pipeline was damaged during recent attacks on Saudi Aramco's facilities, and a large pumping station needed to maintain pressures and flow rates over the 750-mile length of the line was destroyed. Officials say that satellite imaging shows construction under way on a bypass line around the pumping station, which may allow operations to resume at a lower rate while repairs are underway.
Saudi Red Sea loading terminals, which account for about four percent of the total global oil supply, will be closely watched in the week ahead. Benchmark Brent crude settled at $106 on Monday, reflecting expectations of a tight market in months to come.