The Saudi East-West oil pipeline has resumed exports following a drone attack, adding a crucial alternative route to the strained global crude supply.

On September 28, according to people familiar with the matter cited by Bloomberg, the Saudi East-West pipeline has now resumed operations, with crude flows at approximately 3.5 million barrels per day. The pipeline has a total transport capacity of about 7 million barrels per day, of which roughly 5 million barrels are typically used for exports and 2 million barrels supply refineries on Saudi Arabia's west coast.

The restart means Saudi Arabia has regained a key export capability that bypasses the Strait of Hormuz, potentially easing the supply pressure that had intensified due to the pipeline's shutdown, and bringing direct relief to European buyers who had previously been told they would not receive their contracted cargo allocations next month.

Brent crude prices remain around $100 per barrel, with U.S.-Iran negotiations at a stalemate and geopolitical risks continuing to support oil prices. The market is closely watching whether Saudi Arabia will correspondingly reduce exports through the Strait of Hormuz as the East-West pipeline gradually resumes operations, and whether the global crude supply landscape will shift as a result.

Pipeline exports resume, but still far from full capacity

The East-West pipeline was shut down after a drone attack on September 10. Earlier reports citing people familiar with the matter indicated that a full resumption of pipeline operations could take approximately six weeks. Current flows of about 3.5 million barrels per day represent only half of the designed capacity, meaning it will still take some time for the pipeline to return to normal levels.

During the pipeline shutdown, Saudi Arabia compensated for the supply gap by increasing crude exports through the Strait of Hormuz. According to Bloomberg data, Saudi Arabia's overall oil exports rose to a wartime high of more than 5 million barrels per day in September, with most cargoes flowing to Asian markets.

However, security risks for shipping through the Strait of Hormuz persist. As the Middle East conflict continues, vessels passing through remain at risk of attack; meanwhile, Red Sea shipping routes are also affected by the activities of Yemen's Houthi armed forces, and the security pressure on Saudi Arabia's energy infrastructure has not fully subsided.

Saudi export adjustments will become a key variable for the oil market

The East-West pipeline is critical infrastructure that allows Saudi Arabia to bypass the Strait of Hormuz and transport crude to the Red Sea coast for further export. Its resumption not only enhances the flexibility of Saudi Arabia's crude export logistics but also adds an important supply security channel to the global market.

The current market focus is on how Saudi Arabia will reallocate export volumes after the East-West pipeline resumes. If pipeline flows continue to increase, whether Saudi Arabia will reduce crude shipments through the Strait of Hormuz and whether overall export volumes can be maintained at high levels could both influence global crude supply expectations.

Against the backdrop of ongoing Middle East conflict and persistent security risks in major maritime channels, whether the East-West pipeline can further recover to high-load operations and Saudi Arabia's subsequent export arrangements will become important observation points for the market in assessing changes in crude supply and oil price trends.