Why Saudi Arabia’s East-West pipeline matters for global oil
The 1,200km (745-mile) pipeline has been temporarily closed, affecting up to 5 percent of global oil supply.
In another blow to global oil markets, drones struck Saudi Arabia’s East-West oil pipeline last Thursday, prompting the kingdom to suspend operations.
The 1,200km (746-mile) pipeline, which carries roughly 4 to 5 million barrels of oil per day (bpd), links the country’s major oil-producing fields in the east with the Red Sea port of Yanbu, allowing Saudi Arabia to bypass the Strait of Hormuz, which has largely been closed since the outbreak of the US-Israel war on Iran in February.
Saudi Arabia’s Ministry of Energy said the shutdown was a “precautionary” measure after the attack caused damage and injuries in the Riyadh and Medina regions.
It has a maximum capacity of seven million bpd, although actual flows have been lower in recent months – about two million bpd in August according to Kpler – the lowest monthly level since January as Houthi attacks made the Red Sea route difficult to use.