Upgrade to SI Premium - Free Trial

Saudi Arabia hikes East-West pipeline flows above 80% capacity - Bloomberg

October 2, 2026 9:11 AM

Investing.com -- Saudi Arabia has rapidly restored operations along its critical East-West pipeline to more than 80% of total capacity, significantly bolstering its west-coast crude supply as regional security tensions escalate. State energy giant Saudi Aramco is currently pumping roughly 6 million barrels per day through the 7 million barrel-a-day conduit, according to a person familiar with the matter cited by Bloomberg, up sharply from operating at nearly half capacity earlier in the week.

After accounting for domestic processing needs along the Red Sea coast, Aramco now has approximately 4.5 million barrels per day available for export from its western terminals, marking wartime high volumes for the route. The rapid acceleration highlights the kingdom’s strategic flexibility in navigating Middle Eastern supply disruptions, allowing it to bypass increasingly hazardous maritime routes.

The East-West link serves as Saudi Arabia's primary arterial bypass to avoid the Strait of Hormuz, a critical chokepoint exposed to heightened conflict risks during the war with Iran. Earlier this year, the pipeline enabled Riyadh to ship nearly 4 million barrels per day through the Red Sea, though safety along the onshore corridor itself has proven fragile following last month’s projectile strikes launched from Iraq that temporarily halted operations.

In response to that brief shutdown, Saudi Arabia temporarily redirected massive volumes through the Strait of Hormuz to maintain global supply commitments. With loadings now recovering at the Red Sea port of Yanbu alongside those sustained Persian Gulf shipments, analysts estimate that overall Middle Eastern crude exports are rapidly approaching pre-war levels.

That sudden influx of supply has exerted downward pressure on international benchmarks, dragging Brent crude in back below $100 a barrel on Friday. Energy traders continue to weigh this supply recovery against potential geopolitical escalations, particularly as the U.S. deploys an additional aircraft carrier strike group and supplemental troops to the region.

Original Article

Categories

General News Investing