Saudi Arabia Resumes Pipeline Operations

Saudi Arabia has allegedly resumed operations on its pipeline that bypasses the Strait of Hormuz, which had been shut down due to drone attacks earlier in September.

According to three unnamed sources who informed Reuters, the kingdom may begin crude exports from its Red Sea port of Yanbu later on Tuesday. The earlier shutdown had impacted crude loadings at Yanbu, as reported by the outlet.

The pipeline previously transported around four million barrels daily, making up about 4% of the world’s supply, particularly after disruptions from the ongoing conflict with Iran affected shipping through the strait, as noted by Reuters.

Saudi Aramco has not yet provided a comment in response to the Daily Caller News Foundation’s inquiry.

After the restart, the pipeline was reportedly operating at a low rate, according to two of the sources. Aramco intends to restore the flow to the original four million barrels daily, though one source mentioned that a complete recovery might take several weeks. An oil tanker was scheduled to load at Yanbu later Tuesday and then set course for China, based on information from one of the sources.

This resumption of operations contributed to downward movement in oil markets on Tuesday, with Brent crude, the international benchmark, dropping more than $2 a barrel, marking its lowest point since September 8, according to Reuters.

A senior Iranian government official indicated to Kyodo News on Tuesday that Iran would consider reopening the Strait of Hormuz within a week, provided that the U.S. takes steps to alleviate military pressure, which includes potentially lifting the blockade of Iranian ports.

Initial repairs may restore perhaps one or two million barrels a day, but fully returning the pipeline to its full capacity might take “six weeks or more,” EZellen Wald, a nonresident senior fellow at the Atlantic Council’s Global Energy Center, told the DCNF on September 18.

At least one pumping station appears to have been destroyed, with additional stations sustaining damage, Wald added.

Saudi Arabia might expedite the pipeline’s return to service “much quicker, but at a reduced capacity,” by rerouting oil to bypass the damaged pumping stations, Andrew Lipow, president of Lipow Oil Associates, explained to the DCNF on September 18.

Energy Secretary Chris Wright mentioned to CNBC on September 15 that the outage would likely be “measured in days.”

By early June, Saudi Arabia had significantly increased its oil exports from Yanbu, surpassing five million barrels daily, according to a report from the Associated Press citing the International Energy Agency.

Meanwhile, diesel prices surged to a record $6.53 per gallon across the nation on Tuesday, according to the American Automobile Association (AAA).