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

Saudi Arabia’s East-West oil pipeline is currently increasing its crude volumes, according to sources. However, tanker loading operations at the key Red Sea port of Yanbu have not yet resumed. This development comes as the pipeline, crucial for transporting crude from the Eastern Province to the Red Sea, had been previously disrupted. The pipeline’s capacity stands at 7 million barrels per day, though recent throughput has been significantly reduced. Despite the uptick in pipeline activity, the lack of tanker loadings suggests that the export flow remains below normal levels. Markets have reacted to this news, adjusting expectations for a full pipeline restart by the end of September. Current pricing reflects a decrease in confidence for a complete operational resumption by that deadline, with odds falling sharply over recent days. This adjustment appears to be driven by the ongoing absence of tanker loadings, which are critical for restoring the pipeline’s full function. Key Takeaways Market pricing suggests diminished confidence in a full pipeline restart by September 30, as indicated by a reduction in YES probabilities. The absence of tanker loadings at Yanbu is consistent with ...