Saudi Arabia Tests East-West Pipeline as Oil Exports Near Restart

Saudi Arabia began testing its East-West oil pipeline on Tuesday, September 22, after drone attacks forced it to shut the line nine days earlier. The tests aimed to restore crude shipments from the Red Sea port of Yanbu, a key outlet that avoids the Strait of Hormuz.

Later Tuesday, Reuters reported that the pipeline had restarted at a low rate, citing people briefed on operations. Exports from Yanbu were expected to resume that day, though the sources did not say how quickly flows could rise. Saudi Aramco did not immediately respond to a request for comment.

Before the shutdown, Saudi Arabia had been routing about 4 million barrels of oil a day through the pipeline to Yanbu, according to Reuters. That made the route an important substitute as shipping through Hormuz was disrupted during the regional conflict.

The outage halted crude loadings at Yanbu and forced the kingdom to rely more on other routes. Saudi crude shipments through Hormuz averaged 2.9 million barrels a day in the six days through September 18, up from about 700,000 a day in August, according to JPMorgan analysts cited by The National.

The testing and restart reports eased some supply worries. Brent crude fell below $100 a barrel on September 22, reaching $97.69, while U.S. benchmark West Texas Intermediate fell to $89.41, The National reported. The outlet also noted that hopes for a possible reopening of Hormuz weighed on prices, so the pipeline was not the only factor.

The initial low flow means the restart did not immediately restore the pipeline’s earlier contribution to exports. Traders will watch for confirmation that Yanbu loadings resume and for signs that pumping rates can increase.

The Red Sea route also faces security risks. The Associated Press reported that Houthi forces had threatened Saudi vessels and shipping near the Bab el-Mandeb Strait, another passage crude tankers may need to use after leaving Yanbu.