Saudi Arabia resumes East-West Pipeline operations: Report
RIYADH — Saudi Arabia has begun restarting its East-West Pipeline, restoring a key route that allows the Kingdom to transport crude oil to the Red Sea for export without passing through the Strait of Hormuz, according to reports by Reuters and Bloomberg.Three sources told Reuters that operations on the pipeline had resumed, while two said crude was currently flowing at reduced rates. Loading operations at the Red Sea port of Yanbu could resume later Tuesday, according to the report.Bloomberg separately reported that Saudi Arabia had entered the initial stages of restarting the pipeline and was targeting a resumption of exports through the route later this week, citing people familiar with the matter who asked not to be identified.Oil traders have already observed signs of tankers arriving at Yanbu, where crude transported through the pipeline can be loaded for export from Saudi Arabia’s Red Sea coast, Bloomberg reported.The East-West Pipeline was shut down following drone attacks on Sept. 13.Saudi Aramco has been working to bypass a damaged pumping station along the pipeline to restore some flows initially before returning the system to full capacity, according to Bloomberg.The pipeline is strategically important to Saudi Arabia’s oil-export infrastructure because it provides an alternative route for crude shipments that bypasses the Strait of Hormuz.Oil prices fell on Tuesday following reports of the pipeline restart and the possibility of the Strait of Hormuz reopening.Brent crude fell 2.8% to $97.55 a barrel in spot trading as of 11:21 GMT, while West Texas Intermediate dropped 3.1% to $89.30 a barrel.