Photo: - / AFP / Getty Images
A major oil pipeline in Saudi Arabia, which crosses the Arabian Desert, is expected to resume operations within a few days, according to a report by Bloomberg. The pipeline, which was shut down earlier this month due to a drone attack by Iran-backed militias, is anticipated to return to about half capacity soon, with full capacity restoration possibly taking up to six weeks.
The attack caused significant damage to the pipeline, which is crucial for Saudi Arabia's oil exports, especially with the ongoing U.S. war with Iran causing a near halt to oil traffic through the Strait of Hormuz. The pipeline, operated by Saudi Aramco, serves as an alternate route to export oil, bypassing the strait. The closure has affected up to 4% of the global oil supply, leading to a surge in oil prices and global inflation.
Satellite images released showed extensive damage to a pumping station on the 1,200km pipeline, which runs from the Abqaiq oilfield to the Yanbu port on the Red Sea. The Saudi energy ministry has not commented on the report or the extent of the damage. However, The Guardian reported that repairs are underway, and a partial reopening is possible due to the pipeline's two parallel lines.
The attack has been attributed to Iran-backed Houthi forces, who have also captured the strategic island of Perim in the Bab al-Mandeb Strait, further complicating Saudi Arabia's oil export routes. The ongoing conflict in the region has heightened tensions and led to increased oil prices, with Brent crude reaching over $109 per barrel.
As the pipeline resumes operations, Saudi Arabia will need to rely on its stocks to maintain exports. However, these stocks are limited and will run out if the pipeline remains offline for an extended period. The situation remains fluid, with potential for further escalation in the region.