Saudi Arabia’s crucial East-West oil pipeline, which was shut down due to Iran-backed attacks, is set to restart operations soon, according to Energy Secretary Chris Wright.
Wright, in an interview with CNBC on Tuesday, on the sidelines of the G20 energy officials’ meeting in Houston, said the pipeline’s closure is a “brief and temporary interruption,” expected to last only a few days.
Wright said Iran-backed proxy groups were responsible for the strikes.
The pipeline has been a vital resource for Riyadh, enabling the shift of crude oil exports to the Red Sea amid the ongoing U.S.-Iran power struggle over the Strait of Hormuz. With the pipeline currently non-operational, the Saudis are rerouting some exports through Hormuz, backed by U.S. military support, Wright revealed.
Saudi Outage Puts Yanbu Exports At Risk
Satellite images suggest significant damage to one of the pipeline’s pumping stations. “Based on the online pictures, it will take months to repair,” said Andy Lipow, president of Lipow Oil Associates, the publication reported, citing a Monday note.
Meanwhile, maritime trade data analyst Kpler expects damage to Saudi Arabia’s East-West Pipeline to keep Petroline running at only about 50% of normal capacity for up to six weeks, potentially reducing Yanbu exports by 2.5–2.7 million barrels per day.
It added that Saudi Arabia can offset much of this by routing around 3 million bpd through Ras Tanura, but that would require roughly 25 additional VLCC shuttle tankers per month. The key risk is increased exposure to the Strait of Hormuz, which could keep Dubai oil differentials elevated even as the initial price spike fades.
In another post, Kpler stated that low Yanbu inventories, stronger Dubai pricing and reduced Saudi supply are pushing more Atlantic barrels toward Asia, while Europe remains tight as Forties crude shifts east. Meanwhile, U.S. WTI is looking increasingly discounted overseas despite tighter domestic balances.
At the time of writing, Brent crude oil futures expiring in November were trading 0.59% lower at $108.10 per barrel, while WTI crude futures expiring in October were trading 0.88% lower at $104.89 per barrel.
Saudi Oil Lifeline Hit By Drones
Last week, Saudi Arabia shut its key East-West crude pipeline as a precaution after drone attacks from Iraq targeted sections near Riyadh and Medina, causing fires, damage and injuries.
The pipeline is a critical lifeline for Saudi Arabia, carrying around 7 million barrels per day of oil. The alleged attack on the pipeline was detected by NASA’s Fire Information for Resource Management System (FIRMS), which identified eight thermal anomalies in the area.
Amid the crisis, Saudi Crown Prince Mohammed bin Salman sought U.S. military support against Yemen’s Houthi rebels, who are believed to be behind the attack. Although President Donald Trump did not agree to direct U.S. strikes, he offered intelligence support.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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