Bloomberg: Saudi Arabia Resumes Oil Exports via East-West Pipeline

Saudi Arabia has resumed oil exports via the main "East-West" pipeline after repairing it following drone strikes on September 10, as reported by "Bloomberg."

"Saudi Aramco" tested the pipeline last week ahead of resuming flows, while a person familiar with the operations stated that "shipments designated for export have already resumed."

The resumption of the "East-West" pipeline operation provided Saudi Arabia with an alternative route for exporting oil, which it used during the war with Iran, coinciding with increased exports through the Strait of Hormuz this month.

The pipeline's capacity is 7 million barrels per day, with about 2 million barrels typically directed to refineries on Saudi Arabia's west coast, while the remaining quantities are available for export. These external shipments helped meet market needs and curb rising oil prices during the war with Iran.

Traders are monitoring the volume of oil Saudi Arabia will continue to pump through the Strait of Hormuz after the "East-West" line returns to full operation, noting that full resumption may take about six weeks, as previously reported earlier this month.

The Persian Gulf route remains fraught with risks as ships face occasional attacks, while the war with Iran approaches its seventh month.

Oil prices in London exceeded $107 per barrel on Monday, driven higher by diverging positions between the United States and Iran regarding reaching an agreement to end the conflict in the Middle East.

The "East-West" line is a major route for transporting Saudi oil from the Eastern Province to Red Sea ports on the western coast, enabling Saudi Arabia to export part of its production away from the Strait of Hormuz.