Riyadh, 12 September (H.S.): Saudi Arabia has shut down its strategic East-West crude oil pipeline as a precautionary measure. According to the Saudi Ministry of Energy, the pipeline was targeted in several attacks in the Riyadh and Medina regions a day earlier. However, the ministry has not identified those responsible for the attacks, nor has it provided details regarding any damage caused to the pipeline.

According to Iran’s international news network Press TV, the East-West pipeline is of critical importance to Saudi Arabia. It has a capacity of approximately seven million barrels per day and connects the country’s oil fields with export terminals on the Red Sea, providing an alternative route for transporting crude oil from the Persian Gulf.

The strategic importance of the pipeline has increased amid heightened tensions in the Strait of Hormuz. Saudi Aramco CEO Amin Nasser said last month that the pipeline had played a more significant role in mitigating the impact of the closure of the Strait of Hormuz than the release of emergency oil reserves.

Pressure is also mounting on Saudi Arabia’s oil export route through the Red Sea. Concerns over oil transportation in the region have intensified following attacks allegedly launched from Yemen against Saudi oil facilities and the announcement of a maritime blockade.

Notably, in July, Yemen’s military announced a maritime blockade against Saudi Arabia, describing it as a strategy of “blockade for blockade.”

According to shipping-tracking data, Saudi oil flows through the Red Sea recorded a sharp decline in August. Shipments of Saudi crude oil and condensate from the western port city of Yanbu fell to their lowest level in six months.

Market intelligence platform Vortexa estimated that loadings from Yanbu averaged around 3.2 million barrels per day in August, while data from Kpler put the figure at approximately 1.5 million barrels per day.

The decision to shut down the pipeline comes at a time when Saudi Arabia’s crude oil production has also registered a steep decline.

According to the Organization of the Petroleum Exporting Countries (OPEC), Saudi Arabia’s oil production fell to approximately 6.24 million barrels per day in August, compared with around 8.1 million barrels per day in July. This is reportedly the lowest level of Saudi oil production since 1990. The decline came as Saudi Arabia and other OPEC countries were moving ahead with plans to increase oil production.

Regional tensions and a tightening of global crude oil supplies have also affected the oil market. Brent crude prices crossed $100 per barrel, while oil prices recorded a rise of more than 8 per cent by the end of the week. If Saudi Arabia’s alternative oil export routes remain disrupted for an extended period, pressure on global oil supplies and prices could intensify further.

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Hindusthan Samachar / Jun Sarkar