Damage to Saudi Arabia's East-West oil pipeline following last week's drone attack has created new challenges for the country's oil exports. This pipeline, considered one of the key infrastructures for transporting the country's oil, was forced to temporarily halt operations due to attacks from Iraq.
Temporary Halt of Oil Exports
Saudi Arabia announced that this halt, following attacks near the border with Iran, was taken as a precautionary measure. These attacks not only led to the pipeline's shutdown but also caused damages at one of its important pumping stations. Published satellite images show that significant damage has been inflicted on this section.
Read more: Oil prices rise due to the shutdown of Saudi pipeline and insecurity in the Strait of Hormuz
Repair Time and Impact on Exports
Repairs to the East-West pipeline may take between three to five weeks, according to two regional officials familiar with the matter. This pipeline, which is 750 miles (about 1200 kilometers) long, allows Saudi Arabia to send approximately 4 million barrels of oil per day from the Red Sea to global markets, thereby avoiding the Strait of Hormuz. According to available information, during repairs, the pipeline may operate partially, but no precise information is available regarding the amount of oil that can be transported in this state.
Given the lack of precise information from Saudi Arabia regarding the extent of the damages and the repair timeline, Asian refineries currently have uncertainties about the impact of this halt on oil loading at the Yanbu port. At least four Asian refineries have not yet received any explanation from Saudi Arabia, and some of them hope that their shipments at Yanbu will proceed as scheduled unless they are informed of delays in the coming hours and days.
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