Saudi Arabia’s East–West oil pipeline to resume within days
Saudi Arabia’s East–West oil pipeline may resume operations in the coming days after being damaged in a drone attack. U.S. Energy Secretary Chris Wright said this in an interview with CNBC.
Temporary shutdown
According to Wright, the shutdown of the pipeline, which is critical for oil exports, will be short-lived and measured in days. Saudi Arabia closed the oil pipeline late last week after it was damaged in a drone attack launched from Iraq.
The U.S. energy secretary said that Iran-backed groups were responsible for the strike. CNBC provides no other confirmation of this claim in its report.
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Exports through the Strait of Hormuz
According to CNBC, Riyadh had been using the East–West pipeline to redirect crude oil exports to the Red Sea amid the U.S. and Iran’s struggle for control of the Strait of Hormuz. While the pipeline is not operating, Saudi Arabia is redirecting part of its oil exports through the strait with U.S. military support, Wright said.
Oil market reaction
Prices for U.S. crude oil have risen by more than 5% since the start of the week and exceeded $105 per barrel. The market is assessing the possible scale of oil supply disruptions caused by the pipeline’s temporary shutdown.
