Saudi East-West pipeline boosts crude flow, Yanbu tanker loading still halted

The Saudi East-West pipeline is reportedly increasing its crude oil throughput, yet tanker loading at the Yanbu port remains on hold, according to sources. This development follows a recent restart of the pipeline, which had been operating at reduced capacity. Saudi Aramco is attempting to restore flows towards approximately 4 million barrels per day, while the pipeline’s total capacity is around 7 million barrels per day. Despite the increase in pipeline throughput, the continued suspension of tanker loading at Yanbu suggests that full operational normalcy has not been achieved. This situation could continue to constrain Saudi crude export logistics via the Red Sea route, impacting market expectations. Key Takeaways Market activity suggests a reassessment of the likelihood that the Saudi East-West pipeline will fully restart operations by the end of September. The current suspension of tanker loading at Yanbu appears to be a critical factor affecting market pricing, reflecting uncertainty about full operational restoration. Decreased confidence in a near-term restart is consistent with the decline in implied probabilities for a September resolution. What to Watch Market participan...