Saudi Arabia's pivotal East-West pipeline, designed to avoid the Strait of Hormuz, has achieved full operational capacity, currently transporting an impressive 7 million barrels of oil per day, as reported by an insider with knowledge of the situation.
This technical achievement marks a significant milestone in the kingdom’s extensive contingency strategy aimed at ensuring the uninterrupted flow of oil exports following the operational challenges impacting their primary export route. A fleet of tankers is now being redirected to the Red Sea port of Yanbu for oil collection, which plays a vital role in sustaining global oil supplies.
Current crude exports from Yanbu have reached approximately 5 million barrels per day, while the kingdom is also sending out between 700,000 and 900,000 barrels daily of refined petroleum products, according to the insider familiar with the Saudi oil sector. Out of the total 7 million barrels shipped through the pipeline, 2 million are allocated for domestic refineries in Saudi Arabia.
Although the Yanbu route partially compensates for the diminished supply following the closure of Hormuz—through which around 15 million barrels per day of crude were shipped prior to the onset of conflict—the bypass has been instrumental in preventing oil prices from spiraling to crisis levels reminiscent of past supply disruptions.
As the Houthis in Yemen signal their entry into the ongoing conflict, there is rising apprehension that the Red Sea could become a new theater of operations. While the Houthis have not explicitly threatened to target tankers navigating the Red Sea and Bab El-Mandeb strait, they have a track record of issuing threats regarding shipping in the region through drone and missile attacks.
Saudi Arabia has long stood as the world’s oil supplier of last resort, cultivating a strong reputation for reliability. The nation has been preparing for the potential of Hormuz's closure for decades and diligently implemented its contingency measures within hours of the initial US and Israeli strikes targeting Iran, subsequently increasing east-west oil shipments.
Stretching over 1,000 kilometers (620 miles) across the Arabian Peninsula from the extensive oil fields situated in the eastern part of the country to the industrial hub of Yanbu, the pipeline was conceived as a solution during a previous conflict—specifically, the 1980s Iran-Iraq war—when attacks on vessels in the Strait of Hormuz were prevalent. However, the current geopolitical situation presents unprecedented challenges that far exceed those faced in previous conflicts.
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