Source: Fortune
Summary
Saudi Arabia’s East-West pipeline is pumping oil at its full capacity of 7 million barrels a day, bypassing the Strait of Hormuz. The pipeline, which runs over 1,000 km, has been used to redirect oil exports to the Red Sea port of Yanbu, providing a lifeline for global supply. Crude exports via Yanbu have reached 5 million barrels a day, with an additional 700,000 to 900,000 barrels a day of refined products. The pipeline’s capacity has helped mitigate the impact of the Strait of Hormuz closure on oil prices.
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The numbers tell one story.
Saudi Arabia’s contingency plan has been activated, and the East-West pipeline is pumping at full capacity. The kingdom is exporting 7 million barrels a day, with 5 million going through Yanbu and the rest to Saudi refineries. The pipeline’s capacity has helped stabilize oil prices, but concerns remain about the Red Sea becoming a new front in the conflict. The Houthis’ involvement raises the risk of attacks on tankers. Saudi Arabia’s decades-long preparation for this scenario has paid off, but the situation remains volatile.
The pipeline’s success is a testament to Saudi Arabia’s reputation for reliability as the world’s oil supplier of last resort.
Author: Evan Null
