Recent attacks on the Saudi Aramco East-West oil pipeline have caused concerns in the oil market. According to assessments, it appears that restoring the flow of this pipeline to normal will take between 3 to 5 weeks. This could have significant impacts on global oil supply.
Impact of the Pipeline Attack
The biggest impact of this attack has been the destruction of a major pumping station, which is essential for maintaining pressure and flow rate along the 1,200 kilometers of this pipeline. This station has been completely destroyed in the attack, and according to reports received, repairs are underway, with satellite imagery showing that a replacement line is being constructed. This new line may allow operations to continue at a lower rate during repairs.
Read more: Saudi Arabia Turns to the Strait of Hormuz Following the Shutdown of the East-West Pipeline
Impact on Oil Reserves and Exports
Aramco's oil reserves in the Red Sea, which recently accounted for about 4 percent of total global oil supply, will be closely monitored. If the oil flow does not fully resume, these reserves may soon be depleted, and Aramco's export loading may begin to decline by the end of the week. Additionally, Brent crude oil prices reached $106 on Monday, indicating expectations of a turbulent market in the coming months.
Following this incident, a Saudi official confirmed that Aramco will increase its efforts to transport oil through the Strait of Hormuz, which faces risks due to threats from Iran in this route. Recent activities in this route have significantly increased, especially in the past week, and this could offset the slowdown in Yanbu loadings.
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