Saudi East-West oil pipeline is said to be flowing as normal

Aramco had ramped up supplies through the seven-million-barrel-a-day pipeline to more than 80% of capacity by late last week, bringing back much of the link after it was attacked by drones launched from Iraq in September.

Saudi Arabia’s key cross-country oil pipeline is operating normally, people familiar with the matter said, after a report that it had shut following a new attack.

Oil continues to flow through the East-West link, the people said, asking not to be identified discussing private information. The conduit was halted after a fresh strike on a pumping station along the route over the weekend, the AFP reported on Oct 5, citing a person in the kingdom’s energy sector that it did not identify. 

Saudi Aramco and the Energy Ministry did not immediately respond to requests for comment. 

Oil prices, which jumped as much as 1.2% after the AFP report, eased following the report of normal operations. Aramco had ramped up supplies through the seven-million-barrel-a-day pipeline to more than 80% of capacity by late last week, bringing back much of the link after it was attacked by drones launched from Iraq in September.

The link has served as a vital conduit for keeping oil flowing during the Iran war with shipments through the Red Sea without relying on risky journeys via the Strait of Hormuz.

After accounting for supplies to refineries on Saudi Arabia’s west coast, Aramco had about 4.5 million barrels a day of flows available for exports as at last week, according to a person familiar with the matter.

However, the Red Sea route has come under pressure in recent months, with Yemen’s Houthi militants attacking tankers and Saudi infrastructure along the kingdom’s west coast.

The conflict in Yemen has escalated as Yemen’s internationally recognised government launched a full-scale military campaign to recapture Houthi-held territory after weeks of escalating conflict between the militant group and Saudi Arabia. BLOOMBERG