Saudi Arabia has restarted its East-West Pipeline and could resume crude exports from the Red Sea port of Yanbu as early as Tuesday, sources say. The pipeline, shut since a September 13 drone attack, can carry roughly seven million barrels a day. Oil prices extended their decline as the restart eased concerns over Saudi supply.
Saudi Arabia has restarted operations at its East-West Pipeline and could resume exports from the Red Sea port of Yanbu later on Tuesday, three sources briefed on the matter told Reuters. Two of the sources said the pipeline was pumping at a low rate. Saudi Aramco did not immediately respond to a request for comment.
Drone attacks forced Saudi Arabia to shut the pipeline on September 13, halting crude loadings at Yanbu. Several Asian refiners have reportedly been told by Aramco that they will soon be able to collect crude from Yanbu again. The pipeline links the kingdom's eastern oil-producing areas with Yanbu, letting Saudi Arabia export crude oil without routing through the Strait of Hormuz, with maximum capacity of around seven million barrels per day.
Oil prices extended their slide on the news. WTI crude traded below the $90 level in a fifth consecutive negative day. The next technical target sits near the $85 handle. Oil has already fallen sharply from its recent highs as markets price in improving Saudi export flows alongside growing hopes of diplomatic progress between the US and Iran.
Sources: InvestingLive, Investing.com
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