Saudi Pipeline Restart Drives Oil Market Volatility

Saudi Arabia has restarted its East-West oil pipeline, which was forced to shut down after drone attacks on September 11. The pipeline's resumption is expected to drive selling in global oil markets.

The pipeline carries around 4% of the world's total crude supply, or approximately 4 million barrels per day. It has been used as a rerouting option for Saudi Arabia since the U.S.-Israeli war on Iran disrupted oil flows through the Strait of Hormuz.

The resumption is still at a low rate, with two sources stating that it will take around 6-8 weeks to reach full capacity. Three pumping stations serving the pipeline were damaged in the drone attack, and Aramco is working to restore operations to normal.