Saudi Restarts Oil Pipeline as Yanbu Shipments Near Return

Saudi Arabia restarted its East-West oil pipeline on Tuesday, and crude exports from Yanbu could resume after a shutdown disrupted the kingdom’s Red Sea route. Aramco has informally told at least three Asian refiners they may soon collect cargoes there, Bloomberg reported, citing traders.

The pipeline was pumping at a low rate after restarting, according to Reuters sources. One cargo was scheduled to load at Yanbu for China on Tuesday, while Aramco works to restore flows toward 4 million barrels per day.

That volume represents about 4% of global oil supply. The line carries crude from Saudi Arabia’s eastern oil fields across the country to Yanbu, allowing exports to avoid the Strait of Hormuz.

Drone attacks earlier this month forced the pipeline to close and halted Yanbu loadings. A security source told Reuters that restoring full operations could take six to eight weeks, so the restart does not mean the route is back to normal.

The news helped ease supply concerns. Brent crude fell more than $2 toward $97 a barrel during Tuesday trading, its lowest level since September 8, Reuters reported. It later settled at $99.25, down 1.09% on the day.

Yanbu still faces risks beyond pipeline repairs. On September 19, Saudi Arabia said it had thwarted an attempted attack on the port, where the pipeline ends, according to the Associated Press. Tankers leaving the Red Sea terminal also depend on safe passage through regional shipping lanes.

Traders will watch how quickly flows rise and whether scheduled cargoes actually load. Until pumping and shipping both recover, the kingdom’s bypass route offers only a partial cushion for disrupted Gulf supplies.