Saudi Aramco Restarts East-West Pipeline

Traders said at least three Asian refiners have been told by Aramco executives that they could soon pick up cargoes at Yanbu, though there is still no official timetable. Some of those buyers have already missed scheduled loadings, with vessels waiting near the port or still on the way.

The disruption has hit Europe hardest so far. Aramco told at least two European refiners it would allocate no crude to them in October under long-term contracts, and traders said the decision effectively applies across its European customer base.

Saudi Arabia has already shifted more exports to Ras Tanura on the Gulf coast, where cargoes can be moved through the Strait of Hormuz and transferred at sea in the Gulf of Oman. That pivot underscores why the East-West line matters: it gives Riyadh a second export lane when tensions in the region threaten one route or the other.

Oil markets have been quick to price in the prospect of more supply. Brent fell back below $100 a barrel after last week’s spike, while U.S. oil funds and energy equities have been volatile as traders reassess how much of the disruption will linger. A fuller restoration of the pipeline’s 7 million barrel-a-day nameplate capacity could still take as long as six weeks, leaving the market exposed to further swings if the security situation worsens again.

For investors, the immediate focus is whether Aramco can keep Red Sea exports moving without fresh attacks and whether the temporary rerouting through the Gulf holds. The next catalyst is the pace of Yanbu loadings and any update on repairs to the pumping stations that remain offline.