Saudi Arabia has resumed oil loading from Yanbu Port on the Red Sea following the restart of the East-West pipeline. This action helps improve the outlook for Middle Eastern oil exports. Loading of crude oil from this port resumed on September 22, after it was shut down on September 11 due to drone attacks.
Details of Oil Loading from Yanbu Port
The East-West pipeline, which had been shut down due to attacks by armed Iraqi groups, resumed operations last Tuesday. According to reports, Saudi Aramco contacted its customers on Monday evening regarding oil transportation plans for October. A source at an Asian refinery stated that this refinery had loaded a shipment from Yanbu Port a few days ago.
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Two separate trade sources estimate that crude oil loading from Yanbu has been around 2 million barrels per day since last week. The ship tracking company Kepler estimates the current flow rate through the pipeline at approximately 2.65 million barrels per day and predicts that this figure will increase to 3 to 4 million barrels per day in the coming days. However, returning to pre-attack production levels will take about a month.
Impact of Oil Exports on the Global Market
The increase in oil exports from Yanbu could significantly improve crude oil exports from the Middle East, especially as the U.S. war against Iran has restricted transportation through the Strait of Hormuz. According to statistics, before the war, about 20% of the world's oil and liquefied natural gas passed through the Strait of Hormuz. Currently, the average volume of crude oil transported through this strait has reached about 9 million barrels per day as of September 22.
Considering net profits from Yanbu and Fujairah, crude oil exports from the Middle East will increase to just below 80% of pre-conflict levels. Additionally, crude oil loading at the Port of Sidi Kerir in Egypt resumed on September 22 after a 10-day halt, although tankers are still lined up at sea due to ongoing restrictions for commercial vessels.
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