ABNA24 - Saudi Arabia has shut down its crucial East-West crude oil pipeline as a precautionary measure after the facility was targeted in multiple strikes, the kingdom’s energy ministry announces.
The ministry made the announcement on Friday, saying the pipeline had been targeted in the Riyadh and Madinah regions a day earlier.
It did not identify those responsible or reveal the extent of the damage.
Alternative route under pressure
The East-West pipeline has become increasingly important to Saudi Arabia as Iran’s closure of the strategic Strait of Hormuz in response to the United States’ violations, including an illegal American naval blockade, has weighed in decisively on oil flows through the waterway.
The pipeline has a capacity of seven million barrels per day and crosses Saudi Arabia to export terminals on the Red Sea, providing an alternative route for moving crude away from the Persian Gulf.
The Saudi national oil company Aramco’s CEO Amin Nasser said last month that the pipeline had played a bigger role in mitigating the impact of Hormuz’s closure than the release of emergency crude reserves.
Meanwhile, Saudi Arabia’s Red Sea export route is also facing growing pressure.
Yemen has launched retaliatory strikes on Saudi oil facilities in response to Riyadh’s illegal blockade of and recurrent military attacks on the impoverished nation.
In July, Yemen’s Armed Forces declared a maritime embargo against Saudi Arabia, terming it a “siege for siege” strategy.
Ship-tracking data showed a sharp deterioration in Red Sea flows during August. Saudi crude and condensate loadings from the city of Yanbu in the kingdom’s west fell to a six-month low, with market intelligence platform Vortexa estimating August loadings at 3.2 million barrels per day and data and analytics platform Kpler putting the figure at 1.5 million barrels per day.
Saudi oil production in freefall
The pipeline shutdown follows a sharp decline in Saudi crude production. OPEC data showed output fell to 6.24 million barrels per day in August, the lowest reported level since 1990, from 8.1 million barrels per day in July.
The decline came despite plans by Saudi Arabia and other OPEC+ members to increase production.
Meanwhile, tighter global crude supplies and regional tensions have pushed Brent crude above $100 per barrel for the first time in months. Oil prices ended the week more than 8% higher.
/129
Your Comment