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Saudi crude oil pipeline will restart soon, U.S. Energy Secretary says
CNBC • • general
Key Points:
- Saudi Arabia's East-West crude oil pipeline, closed due to Iran-backed drone attacks, is expected to resume operations "very soon," with the outage described as brief and temporary by U.S. Energy Secretary Chris Wright.
- The pipeline was shut after sustaining damage from attacks launched from Iraq by Iran-backed proxy groups, disrupting Saudi Arabia's ability to export crude via the Red Sea.
- While the pipeline is down, Saudi Arabia is rerouting some oil exports through the Strait of Hormuz with U.S. military support, amid heightened tensions in the region.
- Crude oil prices have risen over 5% this week, trading above $105 per barrel, as markets assess the potential supply disruption caused by the pipeline closure.
- Experts suggest repairs to the damaged pumping station could take months, and a prolonged shutdown could result in the loss of up to 120 million barrels of oil exports if the pipeline remains closed for a month.
