Saudi Arabia has fully restored operations on the East-West strategic oil pipeline
Saudi Arabia has officially announced the full resumption of operations on the East-West oil pipeline, which allows crude oil to be transported bypassing the vulnerable Strait of Hormuz.
This was reported by Bloomberg.
Currently, oil shipments via this route have reached approximately seven million barrels per day.
The resumption of the pipeline’s operation is a critically important step toward ensuring the stability of the global energy supply chain. This comes amid significant geopolitical risks that persist in the Middle East region.
“This move is seen as an attempt to ensure the stability of the energy supply chain amid geopolitical risks in the Middle East. Uncertainty regarding Iran’s nuclear ambitions persisted after negotiations between the U.S. and Iran failed to result in an agreement,” Bloomberg reports.
Previously, the kingdom faced serious technical challenges due to destructive actions by Iran.
As a result of hostile attacks, the capacity of the East-West pipeline was reduced by approximately 700,000 barrels per day.
In addition to infrastructure damage, the incidents affected actual resource production.
Specifically, production at the Manifa field fell by 300,000 barrels, and similar capacity losses were observed at the Khurais field.
As a reminder, four vessels, including one tanker, passed through the Strait of Hormuz.
Trump also announced the “imminent reopening” of the Strait of Hormuz.
