Saudi oil pipeline could remain shut for weeks after attack

Saudi Arabia’s East-West oil pipeline could remain largely out of service for several weeks following a Houthi attack, raising concerns over crude supplies, even as the US energy secretary said operations were expected to resume soon. US Energy Secretary Chris Wright said on Monday that the pipeline would likely be back in operation “very soon” and that technical teams were assessing the damage. “I think you’ll see the pipeline back running very soon, ” Wright told Bloomberg, adding that he had remained in contact with Saudi authorities since the strike. Two regional officials briefed on the damage, however, told The Associated Press that repairs could take three to five weeks. One of the officials said the pipeline could operate partially during the repair period, although it was unclear how much crude could flow through it. The pipeline was shut after an attack last week that damaged a major pumping facility. Saudi Arabia has relied heavily on the 1, 200-kilometre pipeline to transport crude from its Gulf oil fields to the Red Sea port of Yanbu, allowing exports to bypass the Strait of Hormuz. The pipeline had been carrying between 2. 6 million and 4 million barrels of crude per day since late August, according to Rystad Energy. A complete shutdown would therefore remove a significant volume of oil from the market and force Saudi Arabia to find alternative ways to move its crude to international buyers. Rystad said Brent crude had risen to $109 a barrel, describing the increase as a sign that markets were increasingly pricing in a substantial loss of supply. The research firm said a month-long shutdown would represent a major disruption, with crude deliveries taking longer and becoming more expensive. While the market could initially absorb the disruption, a prolonged closure would require a significant reallocation of global crude flows. Saudi oil giant Aramco, which operates the pipeline, had not immediately commented on the expected repair timeline. The shutdown comes as Saudi Arabia faces growing difficulties in moving oil through regional waterways amid the wider conflict. The East-West pipeline has become increasingly important as an alternative export route when shipping through the Strait of Hormuz is disrupted.

Read full story on Aaj English Tv