Saudi Arabia Restarts East-West Pipeline After Drone Attack

Saudi Arabia has restarted its East-West Pipeline and could resume exports from the Red Sea port of Yanbu as early as Tuesday, three sources briefed on the matter told Reuters, news that helped push Brent crude down more than $2 a barrel toward $97 — its lowest level since September 8.

The pipeline had been shut since September 11, when drone attacks — which Saudi Arabia has blamed on Iraqi militia — halted crude loadings at Yanbu. The disruption mattered well beyond the kingdom's borders. Since the U.S.-Israeli war on Iran disrupted oil flows through the Strait of Hormuz, Riyadh had been using the East-West line to reroute around 4 million barrels per day, roughly 4% of global supply, to the Red Sea coast.

State oil firm Saudi Aramco did not immediately respond to a request for comment.

Recovery will be gradual

The restart is not a return to normal. The pipeline was pumping at a low rate after coming back online, two of the sources said. Aramco aims to get flows back to 4 million bpd, according to one source.

The timeline is measured in weeks, not days. Reaching 40% of the line's capacity will take a couple of days, and a full restart will take 6 to 8 weeks, a security source said. A separate oil industry source offered a slightly more optimistic estimate, saying a return to full pumping rates would take up to six weeks.

The pipeline has a total capacity of 7 million bpd.

The slow ramp reflects physical damage from the attack. Three pumping stations serving the line were damaged, according to satellite imagery and industry sources. The system is serviced by 11 pumping stations and two separate pressure relief stations, industry assessments show.

First cargo bound for China

Even at low rates, the restart is already moving oil. The pipeline will resume crude supply to Aramco refineries on the Red Sea coast, one source said. One cargo was scheduled to load at Yanbu later on Tuesday, the person said, bound for China.

Traders have been positioning for the resumption. Two trading sources said tankers were being moved to Egypt's Mediterranean Port Said for ship-to-ship transfers, as well as to Sidi Kerir.

Pressure on prices builds

The pipeline's return compounds a broader easing of supply fears this week. Iran said it could reopen the Strait of Hormuz within seven days, and Saudi Arabia has loaded more ships at its Ras Tanura port, raising expectations of increased exports through the strait.

For oil buyers, the question now is execution. If Aramco can hit the 4 million bpd reroute within the weeks ahead — and Hormuz reopens on Iran's stated timeline — the supply premium that lifted Brent above $100 earlier this month could unwind quickly. If repairs at the three damaged pumping stations run longer than the six-to-eight-week estimates, Yanbu's export ceiling stays well below its 7 million bpd potential.