Saudi Aramco’s Pipeline Restart and Gulf Export Shift

Saudi Aramco is responding to the East-West pipeline disruption on two fronts: restoring the route to the Red Sea port of Yanbu and moving more crude from its Gulf terminals for transfer off Oman. The combination has improved the supply outlook, but a pipeline restart is not the same as a return to full export capacity.4210

The Yanbu route is running again, but at a reduced rate

Reports said the pipeline shutdown on September 13 halted crude loadings at Yanbu after drone attacks damaged pumping stations.19 On September 22, sources briefed on operations told Reuters that the pipeline had restarted and Yanbu exports could resume later that day. Other reporting described the line as pumping at a low rate; the cited restart report did not establish that Yanbu loadings had already resumed.48

Restoration estimates remain provisional. One subsequent report described a possible full restart in six to eight weeks, not a confirmed completion date.10 Until flows and loadings recover, the Red Sea route cannot be assumed to handle its previous volumes.

Ras Tanura and Sohar are taking on more of the export load

Trade sources told Reuters that Saudi Arabia had sold about 60 million barrels for September and October from Ras Tanura, with crude moving through the Strait of Hormuz for ship-to-ship transfer off Sohar, Oman.2 That is a sales figure covering two months, not proof that all 60 million barrels have already shipped.

Aramco also offered Asian term buyers additional Arab Light, Arab Medium and Arab Heavy cargoes for loading off Sohar.5 Shipping data cited by Reuters showed about 14 million barrels loaded on seven supertankers at Gulf terminals on September 20—a separate indication of increased activity, not an additional volume to add to the two-month sales figure.3

Sohar sits outside Hormuz, which lets onward-bound buyers take cargoes there. But crude leaving Ras Tanura must still cross the strait to reach the transfer point: this arrangement changes where buyers load, rather than bypassing Hormuz altogether.25 The available evidence does not establish the precise terms of Aramco’s reported offer to handle buyers’ shipping, so its cost or risk benefits should not be assumed.

What changes for prices and buyers?

The prospect of more Saudi supply weighed on oil prices. Reuters reported that Brent settled at $99.25 a barrel on September 22, down $1.09, as traders assessed the pipeline restart and increased movements through Hormuz.17 That price response reflects an improving outlook, not confirmation that the disruption has ended.

For Asian refiners struggling to secure other crude, the additional Sohar offers provide another potential purchasing option.5 Availability is not unlimited, however: Reuters reported that at least two European refining customers had been told they would receive no Saudi crude in October following the pipeline attack.1 The provided reports do not quantify how much reduced Iranian or Russian crude availability has changed demand for these Saudi cargoes.

CEO Amin Nasser’s reported study of additional export routes points to a longer-term resilience effort, rather than capacity buyers can rely on now. The near-term questions remain how quickly Yanbu loadings recover and whether Gulf shipments can continue moving through Hormuz.42