Saudi Pipeline Restart Sends Global Oil Prices Tumbling

Saudi Arabia has resumed operations on its East-West Pipeline after a temporary shutdown due to drone attacks. The pipeline, which was used to reroute around 4 million barrels per day of crude oil from Saudi Arabia and its Gulf neighbours, is now pumping at a low rate.

The pipeline's restart helped drive selling on global oil markets, with Brent crude falling by more than $2 a barrel to its lowest price since September 8. The kingdom had been using the pipeline to bypass the Strait of Hormuz, where Saudi Arabia and its Gulf neighbours have faced disruptions in oil flows.

The East-West Pipeline has a capacity of 7 million bpd, but Aramco was seeking to get the pumping rate back to 4 million bpd. The pipeline's resumption could signal a potential rise in Middle Eastern oil flows, according to three sources familiar with the matter.