Saudi Oil Pipeline Repairs Could Take Weeks After Drone Attack
LNG Demand in China and India Could Surge When Prices Normalize What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Last week’s drone attacks on Saudi Arabia’s key East-West oil pipeline have caused damage that could take weeks to repair, potentially significantly cutting the disrupted crude oil flows from the Middle East.
Saudi Arabia was forcedto temporarily shut downthe East-West oil pipeline following drone attacks launched from the territory of Iraq close to the Iranian border on Thursday.
The shutdown of the pipeline is a precautionary measure, after the attacks resulted in a number of injuries, the world’s top crude oil exporter said.
There has beendamage to the pipeline, including at one major pumping station along the pipeline route, satellite images released by Vantor and published via Getty Images showed.
The repairs could take three to five weeks, two regional officials briefed on the matter toldThe Associated Press.
The pipeline, on which Saudi Arabia has relied to export about 4 million barrels per day (bpd) from the Red Sea instead of the Strait of Hormuz since the Iran war began, may work partially during the repairs, one of AP’s sources said.
However, the source couldn’t say how much crude oil could be shipped via a partially-operational pipeline.
The 750-mile-long East-West pipeline became Saudi Arabia’s vital oil route to bypass the Strait of Hormuz after the Middle East conflict started and Hormuz was closed to shipping traffic.
Thanks to the East-West pipeline, the Kingdom has managed to re-route most of its crude loadings from the western ports in the Persian Gulf to the Red Sea port of Yanbu.
Apart from announcing the shutdown of the pipeline and condemning the attacks, Saudi Arabia has not officially updated the market either on the extent of the damage or the timelines for repairs.
As a result, Asian refinersare not sure yethow the shutdown of the pipeline would affect oil loadings at the port of Yanbu.
At least four Asian refiners haven’t received any clarification from Saudi Arabia yet, traders involved in the communication toldBloombergon Monday.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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