Crude oil loading at Ras Tanura and Juaymah ports in Saudi Arabia has significantly increased following recent disruptions in the 1,200-kilometer East-West pipeline. On September 21, six large oil tankers (VLCC) loaded approximately 12 million barrels of oil at these two ports. This increase in loading reflects the rapid ability to flow oil in response to pressures in the Strait of Hormuz.
Disruptions in the East-West Pipeline
These disruptions in the East-West pipeline, which supplies about 70% of Saudi Arabia's oil exports through the Yanbu marine terminal, have been caused by multiple attacks from Houthi forces in Yemen. This pipeline, with a total capacity of 7 million barrels per day, has been severely disrupted due to these attacks. According to experts, returning to full oil flow capacity in this pipeline may take 6 to 8 weeks.
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Resumption of Operations in the East-West Pipeline
Saudi Arabia has resumed operations in the East-West pipeline and has returned some flows to this route. However, the current flow is operating at a low rate, and the national oil company of Saudi Arabia, Aramco, is working to restore flows to full capacity. Experts predict that this route will gradually be able to restore lost export flows, likely increasing global oil supply in the coming weeks.
Despite these advancements, the market still faces serious challenges. Saudi Arabia's oil flows remain at a level lower than normal, and traffic in the Strait of Hormuz remains restricted.
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