Saudi Pipeline Restart Sparks Sell-Off in Global Oil Markets
Saudi Arabia has restarted operations on its East-West Pipeline after drone attacks last month. The critical pipeline was shut down on September 13 following targeted strikes, which halted crude loadings at the Yanbu port.
Drone strikes were launched from Iraq's Maysan province, leading Baghdad to fire local security commanders. A splinter network of Iran-backed militias executed the attack outside established command structures.
The East-West Pipeline was used as a bypass route for approximately 4 million barrels per day (bpd) to safely reroute oil to the Red Sea coast, accounting for nearly 4% of total global supply. State energy firm Saudi Aramco is working to restore the full capacity of 4 million bpd.
The pipeline's restart has eased global oil markets. Traders reacted with a sell-off, driving Brent crude futures down by more than $2 a barrel to their lowest price point since September 8.