Saudi Arabia may face a shortage of export reserves in just a few days if the East-West pipeline, which transports crude oil from across the kingdom to the Red Sea coast, is not reopened.
Saudi Arabia's ability to continue oil exports is facing a new threat. The Houthi group from Yemen, which is aligned with Iran, has taken control of an island at the entrance of the Red Sea, putting additional pressure on the strategic Bab el-Mandeb Strait. At this time, Saudi Arabia's main East-West pipeline remains closed.
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Importance of the Bab el-Mandeb Strait
The Bab el-Mandeb Strait is recognized as a vital gateway between the Red Sea and the Gulf of Aden. Houthi control over this strait, along with ongoing disruptions in shipping through the Strait of Hormuz, has severely limited Saudi Arabia's options for transporting oil to international markets.
Following drone attacks on Friday, the East-West pipeline in Saudi Arabia has been halted. Estimates suggest that repairs may take five to six weeks, while some sources believe the pipeline could return to operational status sooner.
Saudi Arabia's Oil Reserves
The East-West pipeline has been particularly important over the past six months, as it allows Saudi Arabia to bypass disruptions caused by the closure of the Strait of Hormuz. This pipeline transports 4 million barrels of crude oil per day to the port of Yanbu on the Red Sea, which is equivalent to about 4% of global oil supply.
With the operations of this pipeline halted, the reserves available in Yanbu will only be sufficient for about five to seven days. Saudi Arabia also has additional crude oil reserves at the port of Ain Sokhna on the Red Sea and Sidra Carrier in the Mediterranean, which can cover customers for a few more days.
According to estimates, the storage capacity of Yanbu is about 35 million barrels, while Ain Sokhna and Sidra Carrier each have capacities of about 18 million and 20 million barrels, respectively. However, these facilities are not fully filled, and without the reopening of the East-West pipeline, inventories will soon be depleted.
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