Saudi Arabia has indicated plans to restart its crucial East-West pipeline and resume crude oil exports from its Red Sea coast, prompting a brief decline in global oil prices. On Monday, Brent crude, the international benchmark, fell nearly 3 percent to $97.43 per barrel before recovering to around $99.64, marking an overall weekly decrease of about 4 percent.
The 1,200-kilometer pipeline, which transports crude from Saudi Arabia’s eastern oilfields to the port of Yanbu on the Red Sea, had been shut down nearly two weeks ago following a series of drone attacks that severely damaged pumping stations and caused injuries. The closure had led to a sharp increase in oil prices, with Brent crude surging to as high as $109.97 per barrel.
A source familiar with the matter confirmed that the pipeline is expected to resume operations by the end of the week, although Saudi Aramco, the state oil company, has not yet commented officially. The pipeline’s official capacity is about 7 million barrels per day, but it remains unclear how much of that capacity will be restored in the initial phase.
Analysts suggest that if only about 25 percent of the pipeline’s capacity is brought back online, no additional crude would reach global markets, since Saudi Arabia would likely divert this volume to its own refineries on the western coast. However, if flows reach approximately 40 percent of capacity, an estimated 1 million barrels per day could be added to international supply.
Prior to the pipeline shutdown, a significant portion of Saudi crude shipped through Yanbu was destined for European markets. European refineries were reportedly informed last week that they would not receive scheduled cargoes in October because of the disruption. During the outage, Saudi Arabia rerouted exports through the Strait of Hormuz, the narrow maritime chokepoint in the Gulf, resulting in a fivefold increase in shipments from the Gulf port of Juaymah. On September 20, every berth at Juaymah was reported to be fully occupied.
The pipeline closure and subsequent rerouting have altered the geography of Saudi oil exports within a matter of weeks, according to energy data analysts. Meanwhile, market participants have been responding not only to supply changes but also to ongoing diplomatic developments. Speculation around potential diplomatic progress in upcoming talks involving Iran, China, and the United States has contributed to the recent drop in oil prices.
President Donald Trump indicated in a recent interview that he might be open to meeting with Iran’s president during the week’s diplomatic engagements, raising hopes for a possible easing of the regional conflict that has helped drive oil market volatility.
As diplomatic efforts continue alongside the gradual restoration of pipeline operations, the global oil market remains sensitive to shifts in supply routes and geopolitical developments in the Middle East.