3 hrs ago
Oil Surges as Saudi Pipeline Shutdown Could Last Weeks
Oil became more expensive after a major Saudi pipeline stopped working.
Reports said repairs might take several weeks.
The pipeline normally carries up to 7 million barrels of oil each day to Yanbu on the Red Sea.
Saudi Arabia may use oil stored in Yanbu for about five to seven days.
If the pipeline stays closed longer, Saudi Arabia might have to reduce oil production.
The U.S. energy secretary said he expects it to restart very soon.
Oil supplies are also being affected by problems around the Strait of Hormuz and attacks on Russian refineries.
These problems are making diesel and other fuels more expensive.
Higher fuel costs can raise prices across the global economy.
Brent crude rose about 5% toward $110 a barrel after reports that Saudi Arabia’s East-West pipeline could remain closed for several weeks.
The pipeline, which can transport about 7 million barrels daily to Yanbu, was halted after being struck by militants.
Saudi storage at Yanbu may support exports for five to seven days, but a longer outage could force production cuts and major disruption.
U.S. Energy Secretary Chris Wright said the pipeline should reopen “very soon,” contrasting with regional officials’ reported estimate of several weeks.
Strait of Hormuz tensions, disrupted refining in Russia, and tight fuel shipping capacity are adding to pressure on global oil markets.
- Who
- Saudi Arabia, Saudi Aramco, regional officials, U.S. Energy Secretary Chris Wright, and oil-market analysts are involved in the developments.
- What
- Saudi Arabia’s East-West oil pipeline was halted after a militant strike, prompting a surge in oil prices and conflicting estimates about when it will reopen.
- Where
- The pipeline runs to Yanbu on Saudi Arabia’s Red Sea coast, while related supply concerns involve the Strait of Hormuz, Russia, and Ukraine.
- When
- The report was published September 14, 2026; Brent rose after reports that the outage could last several weeks.
- Why
- The pipeline is Saudi Arabia’s main route for bypassing the Strait of Hormuz, whose disruption has restricted Persian Gulf oil exports.
Extended Disruption Risk
Rapid Reopening Outlook
Pipeline repair timeline
Extended Disruption Risk
Two regional officials cited by the Associated Press said the East-West pipeline could remain out of service for several weeks.
Rapid Reopening Outlook
U.S. Energy Secretary Chris Wright said he expected the Saudi pipeline to be running “very soon.”
Impact on Saudi oil exports
Extended Disruption Risk
Analysts said a prolonged outage could exhaust Yanbu inventories, force production cuts, and cause major disruption.
Rapid Reopening Outlook
If flows resume quickly, Yanbu storage could cushion the effect and limit the market impact.
Strait of Hormuz supply
Extended Disruption Risk
The pipeline outage removes Saudi Arabia’s key workaround while tensions continue around the Strait of Hormuz.
Rapid Reopening Outlook
Wright said he was confident that flows through Hormuz would increase in the weeks ahead, reporting that more than 12 million barrels had passed through the chokepoint the previous night.
Key facts
- Brent crude move
- Rose about 5% toward $110 a barrel before paring gains.
- Pipeline capacity
- Saudi Arabia’s East-West pipeline can transport about 7 million barrels per day to Yanbu.
- Reported outage duration
- Two regional officials told the Associated Press the pipeline could remain out of service for several weeks.
- U.S. assessment
- Energy Secretary Chris Wright said the pipeline should be operating “very soon.”
- Yanbu storage
- Analysts said storage could support exports for five to seven days.
- Year-to-date Brent performance
- Brent crude was reported to be up more than 75% this year.
- Diesel prices
- Diesel futures were trading at around $200 a barrel.
Quotes
June Goh
Senior oil market analyst at Sparta Commodities SA
“It all boils down to the duration”
thehindubusinessline.com
Sources
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