Saudi Arabia has accelerated the revival of its oil pipeline, especially following the attack on three pumping stations on September 11, allowing it to quickly resume oil loading at its Red Sea terminals. This analysis shows that loadings from the two main terminals of Aramco in the Red Sea reached nearly 45 million barrels from September 17 to October 4, averaging about 2.5 million barrels per day.
Repair and Rapid Return to Operations
Aramco's ability to bypass or repair damaged stations along the pipeline route has clearly been demonstrated in this rapid response. Saudi Arabia's Minister of Energy, Prince Abdulaziz bin Salman, announced that the pipeline was reactivated less than a week after the damage, and flows have now reached 5.8 million barrels per day. This volume is expected to soon approach the average of 7 million barrels per day recorded before the attack, helping to meet the needs of Saudi refineries and export terminals.
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Impact on Oil Exports
The return to activity at the Yanbu terminal is critical for Saudi Arabia's success in reviving its oil trade, especially given Iran's blockade in the Strait of Hormuz. According to reports, Saudi oil exports reached nearly 7 million barrels per day in September, up from 2.5 million barrels per day the previous month. In addition to the volume of oil transported through the pipeline, Aramco has significantly increased tanker loadings at the main Gulf terminals and has sent most of its crude oil through this strait despite security concerns.
Iran has significantly accelerated attacks on energy transport in the Strait of Hormuz, having attacked 12 tankers and gas carriers just last week. However, despite the deteriorating security conditions, tanker operators have moved an average of 10 to 14 million barrels of oil solely from the Strait of Hormuz in recent days. This oil supply is crucial for pricing, and experts believe that without this supply, a price scenario of $200 per barrel is likely.
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